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Thompson, LaMalfa Introduce Bipartisan Bill to Ensure Fire Victims Don’t Pay Taxes on PG&E Court-Ordered Trust Payments

Washington –
Today, Reps. Mike Thompson (CA-05) and Doug LaMalfa (CA-01) introduced bipartisan legislation to ensure that no fire survivors are taxed on the payments they received from the PG&E Fire Victims Trust. Following fires in 2015, 2017, and 2018, PG&E established a court-ordered trust of over $13 billion for survivors of these devastating events.

“I have heard from constituents across our community who are deeply, deeply concerned that they will face a tax burden upon receiving a payout from PG&E,” said Thompson. “This trust was set up to help people get back on their feet and recover after a destructive fire. They should not have to pay taxes on these payouts. I am proud to introduce this bill alongside Rep. LaMalfa to help our constituents receive the money they are owed, and will continue working to ensure survivors have the resources they need to recover from these tragedies.”

“Fire victims have lost homes, belongings, and for some, even their loved ones. We should not ask survivors to pay federal taxes on compensation that they will use to rebuild their lives. And we certainly should not be asking them to pay taxes on […]

By |2022-04-01T22:47:30+00:00April 1st, 2022|fire, Fire Relief Info, New Tax Laws|0 Comments

California Tax Updates for 9/29

Update 1:

A lucrative new business tax credit may help California’s small businesses hit hard by economic disruption in 2020 and 2021. Governor Gavin Newsom has signed the Main Street Small Business Tax Credit II bill providing financial relief to qualified businesses that have suffered unprecedented job losses. The credit, which can be up to $150,000 per employer, can be used against income taxes or by an irrevocable election, applied to sales and use taxes. To qualify, businesses must have had no more than 500 employees on Dec. 31, 2020, whose wages were subject to CA withholding laws. They must also have seen a decrease of at least 20% in gross receipts. Here are the details: https://bit.ly/3CA61dy

Update 2:

The California Trucking Association (CTA) seeks help from the U.S. Supreme Court. In 2020 the CA worker classification law (AB5) took effect. It applies the ABC test to determine whether workers are employees or independent contractors, with […]

By |2021-09-29T22:53:20+00:00September 29th, 2021|business, CA tax, covid-19, tax credit|0 Comments

You Can Only Claim a Casualty Loss Tax Deduction in Certain Situations

In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these deductions harder to take.

What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, fire, act of vandalism or a terrorist attack.

More difficult to qualify 

For losses incurred through 2025, the TCJA generally eliminates deductions for personal casualty losses, except for losses due to federally declared disasters. For example, during the summer of 2021, there have been presidential declarations of major disasters in parts of Tennessee, New York state, Florida and California after severe storms, flooding and wildfires. So victims in affected areas would be eligible for casualty loss deductions.

Note: There’s an exception to the general rule of allowing casualty loss deductions only in federally declared disaster areas. If you have personal casualty gains because your insurance proceeds exceed the tax basis of the damaged […]

California Tax Updates from 8/25

Update 1:

Employers in California counties plagued by wildfires get payroll tax relief. The CA Employment Development Dept. (EDD) has announced tax relief for employers in Trinity, Tehama and Shasta Counties, directly affected by the McFarland, Monument and Dixie Fires. Those employers may request up to a 60-day extension of time from the EDD to file their state payroll reports and deposit payroll taxes, without penalty or interest. A written request for an extension must be received within 60 days from the original delinquent date of the payment or return. Here’s more: https://bit.ly/389teWV

Update 2:

If you’re a California resident who owes estimated CA tax payments, your next payment due date is rolling up fast. By Sept. 15, the third installment of your 2021 state tax is due. Generally, you must make estimated payments if you expect to owe at least $500 for 2021, after you subtract withholding or credits you may have, or face penalties. […]

Eligible Businesses: Claim the Employee Retention Tax Credit

The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules.

Background

Back in March of 2020, Congress originally enacted the ERTC in the CARES Act to encourage employers to hire and retain employees during the pandemic. At that time, the ERTC applied to wages paid after March 12, 2020, and before January 1, 2021. However, Congress later modified and extended the ERTC to apply to wages paid before July 1, 2021.

The ARPA again extended and modified the ERTC to apply to wages paid after June 30, 2021, and before January 1, 2022. Thus, an eligible employer can claim the refundable ERTC against “applicable employment taxes” equal to 70% of the qualified wages it pays to employees in the third and fourth quarters of 2021. Except as discussed below, qualified wages are generally limited to $10,000 per employee per 2021 calendar quarter. Thus, the maximum ERTC amount available is generally $7,000 per employee per calendar quarter or $28,000 per employee in 2021.

For purposes of the ERTC, a qualified employer is eligible if it experiences a significant […]

By |2021-07-02T18:31:52+00:00July 2nd, 2021|business, covid-19, tax credit|0 Comments
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