exemption - Linkenheimer LLP CPAs & Advisors

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 10/2

Post 1:

California expands its professional exemption. Effective Sept. 9, 2020, this exemption is expanded to include employees who provide instruction for a course or laboratory at colleges and universities in CA. To qualify, an individual must satisfy the duties test and salaries test. Employees must earn the monthly equivalent to no less than twice the state minimum wage in which the employee is employed for at least 40 hours per week, or a minimum salary in 2020 of $117 per classroom hour. In 2021, this hourly rate rises to $126 and in 2022 to $135. Beginning in 2023 the rate will be adjusted based on the state minimum wage. Contact your Linkenheimer CPA with questions.

Post 2:

The California Franchise Tax Board (FTB) is hoping to increase the number of Californians who receive the CA earned income tax credit. The FTB is required to analyze and develop a plan to increase the number of claims of the CA earned income tax credit, […]

By Linkenheimer LLP|2020-10-02T17:27:26+00:00October 2nd, 2020|ca, CA tax, california, credit, ftb, income tax, state income|0 Comments

Veterans In California Get Increased Exemptions

Veterans in California get increased exemptions. The CA State Board of Equalization (SBE) has announced increases in both the property exemption amounts and the household income limit for the disabled veterans’ exemption for 2021. For the 2021 assessment year the exemption amounts are $147,535 for the basic exemption, and $221,304 for the low-income exemption (these amounts for the 2020 assessment year are $143,273 and $214,910, respectively). Also, the household income limit for those claiming the low-income exemption is $66,251 (up from $64,337 for 2020). Contact your Linkenheimer CPA with questions.

By Linkenheimer LLP|2020-09-03T20:02:46+00:00June 3rd, 2020|New Tax Laws|0 Comments

Disabled Veterans in California Get a Tax Break

Disabled veterans in California get a tax break. The California State Board of Equalization has announced increases in the property exemption amounts and the household income limit for disabled veterans’ exemptions for 2020. For the 2020 assessment year, the exemption amounts are $143,273 for the basic exemption (up from $139,437 for 2019) and $214,910 for the low-income exemption (up from $209,156 for 2019). The household income limit for those claiming the low-income exemption is $64,337 (up from $62,6147 for 2019). Contact your Linkenheimer CPA with questions.

By Linkenheimer LLP|2020-09-03T20:03:55+00:00June 3rd, 2019|tax planning, taxpayer|0 Comments

AMT Retained with Higher Exemption Amounts

The alternative minimum tax (AMT) is a tax system separate from the regular tax that is intended to prevent a taxpayer with substantial income from avoiding tax liability by using various exclusions, deductions, and credits.

Under it, AMT rates are applied to AMT income determined after the taxpayer “gives back” an assortment of tax benefits. If the tax determined under these calculations exceeds the regular tax, the larger amount is owed. In computing the AMT, only alternative minimum taxable income (AMTI) above an AMT exemption amount is taken into account. The AMT exemption amount is set by statute and adjusted annually for inflation, and the exemption amounts are phased out at higher income levels.

Under pre-Act law, for 2018, the exemption amounts were scheduled to be:

(i) $86,200 for marrieds filing jointly/surviving spouses;

(ii) $55,400 for other unmarried individuals;

(iii) 50% of the marrieds-filing-jointly amount for marrieds filing separately, i.e., $43,100;

And, those exemption amounts were reduced by an amount equal to 25% of the amount by which the individual’s AMTI exceeded:

(i) $164,100 for marrieds filing jointly and surviving spouses (phase-out complete at $508,900);

(ii) $123,100 for unmarried individuals (phase-out complete at $344,700); and

(iii) 50% of the marrieds-filing-jointly amount for marrieds filing separately, i.e., $82,050 (phase-out complete at […]

By Linkenheimer LLP|2020-09-03T20:04:45+00:00January 12th, 2018|amt, New Tax Laws, tax deductions|0 Comments