CA tax - Linkenheimer LLP CPAs & Advisors

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

California Tax Updates for 9/23

Update 1:

All California taxpayers who have an active Power of Attorney (POA) will soon be getting a letter from the state Franchise Tax Board (FTB). The letter provides a list of the taxpayer’s active POAs with the FTB and the representative relationship on the taxpayer’s account. The new form is intended to keep taxpayers informed of their POA relationships, the level of access the POAs have (limited or full) and the expiration date of the declaration. The form should not be used to revoke a POA. Contact us with questions.

Update 2:

Property owners in California can apply for property tax deferment for the 2021-2022 tax year. The CA Property Tax Postponement (PTP) Program is administered by the Controller’s Office. It allows qualified homeowners to postpone the property tax on their primary residence. Applicants must be seniors, blind, or have a disability and meet certain income and equity requirements. Funding for the PTP Program is limited, so applications will be processed in […]

By Linkenheimer LLP|2021-09-23T17:05:34+00:00September 23rd, 2021|CA tax, california, ftb, property tax|0 Comments

California Tax Updates for 9/16

Update 1:

Moving out of California? The CA Franchise Tax Board (FTB) acknowledges that a variety of factors have led to many individuals and businesses leaving CA. If you do, be sure to update your address. It’s common, said the FTB, for taxpayers to move after filing a tax return. Without an updated address on file, taxpayers may be unreachable if the FTB needs more information to resolve an issue with a return or payment. Each year, says the FTB, thousands of refunds are returned to them because of a bad address, leaving issues unresolved. Failing to respond to a notice could bring additional penalties, fees and collection action. Contact your Linkenheimer CPA with questions.

Update 2:

Coming soon to California businesses, the Homeless Hiring Tax Credit. The CA Franchise Tax Board (FTB) has announced details of this newly enacted credit. It will be available to qualifying taxpayers who hire new employees deemed to be eligible homeless individuals. Employers may receive $2,500 to […]

By Linkenheimer LLP|2021-09-16T21:18:04+00:00September 16th, 2021|ca, CA tax, california, ftb, New Tax Laws|0 Comments

California Tax Updates for 9/8

Update 1:

New figures that affect your 2021 California taxes have been released, adjusted for inflation. Tax rates and related items have been indexed to reflect an inflation rate of 4.4%, according to the CA Franchise Tax Board (FTB). As it did for 2020, the FTB also included adjustments for the standard deduction. For single or separate taxpayers the standard deduction for 2021 rises from $4,601 to $4,803. For all others it rises from $9,202 to $9,606. Personal and senior exemptions rise from $124 to $129. For a joint or surviving spouse it increases from $248 to $258. The dependent exemption credit rises from $383 to $400. Contact your Linkenheimer CPA with questions.

Update 2:

Certain airport employees in California lose in court. CA wage law requires that employees must be paid for all hours worked. But employees of vendors at the Los Angeles International Airport (LAX) were subject to waiting in federal Transportation Security Administration (TSA) lines without pay on their way […]

By Linkenheimer LLP|2021-09-08T18:42:21+00:00September 8th, 2021|CA tax|0 Comments

California Tax Updates for 9/1

Update 1:

San Francisco will impose an additional employer tax on certain businesses, effective in 2022. Businesses affected are those in which the highest-paid managerial employee earns more than 100 times the median compensation of its employees. The tax rate will increase for every additional 100 times that the CEO’s pay exceeds the median worker’s pay. The extra tax maxes out when the ratio of CEO pay to worker pay reaches 600 to 1. The maximum tax on payroll is 2.4% or a surcharge on the gross receipts tax of up to 0.6%. Businesses that are exempt from San Francisco’s gross receipts tax, due to small business status, are also exempt from the pay ratio tax. Contact your Linkenheimer CPA with questions.

Update 2:

California’s Gig Worker law (Prop. 22), which passed in Nov. 2020, has been ruled unconstitutional. That law exempts app-based driving companies such as Uber and Lyft from a previously passed law, known as the 2020 ABC test. That test […]

By Linkenheimer LLP|2021-09-01T20:36:48+00:00September 1st, 2021|CA tax, tax increase, tax planning|0 Comments