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To help balance its budget, California has reduced the state tax credit for dependents.
The change will increase a family's California taxes for 2009 by about $210 per dependent compared with 2008.
Now that the state is swimming in red ink, it decided to take away that gift to families and set the dependent credit equal to the adult amount for 2009 and 2010. So the dependent credit will shrink from $309 to roughly $99. (The credit is indexed for inflation; the final amount for 2009 will be announced later this summer.)
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