California death certificate

Effective for taxable years beginning on or after January 1, 2005, the entire amount of a $10,000 death benefit paid by the state to the surviving spouse of, or a beneficiary designated by, any member of the California National Guard, State Military Reserve, or Naval Militia, who dies or is killed after March 1, 2003, in the performance of duty is excluded from gross income for California personal income tax purposes. The death benefit enacted by this legislation is operative upon appropriation by the legislature for purposes of funding the benefit payments. The Military Department shall determine if the death occurred in the performance of the member's duty, and shall issue a certificate of benefit eligibility within 20 days of application by the surviving spouse or designated beneficiary. The California Franchise Tax Board (FTB) notes however, that the death benefit is taxable for federal purposes since such a benefit is not available at the federal level. (Ch. 547 (S.B. 1193), Laws 2004, effective as noted above; Analysis of Amended Bill, California Franchise Tax Board, June 29, 2004.)

Copyright CCH Incorporated: Federal and State Tax Oct 5, 2004
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