Details of Public Law 119-21, section 70103 , One Big Beautiful Bill Act

This provision makes permanent the repeal of the deduction for personal exemptions established under the Tax Cuts and Jobs Act (Public Law 115-97, section 11041).

Additionally, for taxable years beginning after December 31, 2024, and before January 1, 2029, this provision allows a deduction in amount equal to $6,000 for each qualified individual. The deduction is reduced for taxpayers whose modified adjusted gross income (AGI) exceeds $75,000 ($150,000 for married filing joint).

The provision defines the term “qualified individual” as the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year.

To claim the senior deduction, the taxpayer must have a valid social security number (SSN) on the return for the taxable year. The omission of a valid SSN will be treated as a mathematical or clerical error. Additionally, in the case of a married individual, they must file a joint return to claim the deduction.

California does not conform to federal personal-exemption deductions. Instead of personal-exemption deductions, the PITL provides personal-exemption tax credits, including a senior exemption for individuals age 65 or older. For taxable years 2025, individual taxpayers are allowed personal-exemption tax credits in the amounts shown below:

Exemption Type Number of Exemptions Exemption Amount Personal Exemption One exemption for themselves, and one for a spouse, if married filing joint (MFJ): $153 Senior One additional exemption if 65 or older, and one for a spouse 65 or older, if MFJ: $153 Blind One additional exemption if visually impaired and one for a visually impaired spouse: $153 Dependent One exemption for each qualifying dependent: $475

The personal-exemption tax credits are reduced when a taxpayer’s federal AGI exceeds a threshold amount. For taxable year 2025, the exemption credits are reduced by $6 ($12 if married filing joint) for each $2,500 ($1,250 if married filing separately) of AGI or fraction thereof, that exceeds the following threshold amounts:

Single or Married/RDP filing separate — $252,203

Married/RDP filing joint — $504,411

Head of Household — $378,310

Under the Administration of Franchise and Income Tax Law (AFITL), FTB treats specified errors identified on the return during processing as math errors, which includes not providing a valid identification number as required to claim a dependent exemption tax credit, earned income tax credit, young child tax credit, or foster youth tax credit. California doesn’t conform to the definition of mathematical or clerical error under IRC section 6213. As a result, California does not conform to the changes made by this provision related to IRC section 6213.