Questions tagged [california]

for questions that relate to the laws, practices, and products for the state of California. California is a state within the 50 state union of the United States.

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1answer
47 views

What is the cost of an employee for a company?

What is a typical cost for an IT company in California to hire employee with 300K/year base salary? The company offers full health insurance coverage and 401K matching, but these are variable. To make ...
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2answers
89 views

Do I qualify for unemployment benefits if I forgot to file in time, but now I have found a new job?

I had lost my job in June 2019 but I missed on filling my claim in time (since I was busy looking for new jobs). I found a job, but would I still get unemployment from my time that I was unemployed, ...
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2answers
32 views

How are the taxes calculated when a person lived and worked in two different states

Let's assume that in the beginning of the year a person lived and worked in one state and then relocated to another state. For simplicity, in total the person earned 200k and it is evenly distributed (...
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1answer
27 views

Do short term capital losses have to be used against long term capital gains for tax purposes?

As explained in this article, I understand that short term capital losses can be used to offset long term capital gains: Long-term gain with short-term loss Again we have to consider two ...
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3answers
5k views

What is the difference between salary and bonus with respect to taxes?

Let's assume one company offers 200k salary and another 100k salary and 100k bonus at the end of the year. Is there a difference for me at the end of the year (after all taxes are returned)? The ...
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1answer
52 views

Can capital losses be used to offset capital gains for California state taxes?

California treats capital gains just like normal income Suppose I have capital gains of $10k and capital losses of $8k Will this add $2k (from $10k - $8k) to my California taxable income? Or will ...
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0answers
28 views

How does withheld California income tax factor into estimated tax installments?

As the venerable federal Publication 505 says, the federal income tax is a pay-as-you-go tax, with two ways to pay as you go: withholding and estimated tax. For estimated tax payments, there are two ...
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0answers
25 views

Do I have to file a state tax amendment form too if I filed an incorrect federal return?

Last year (2019), I wrongly filed tax as resident. But I am non resident alien and F1 international student. I filed 1040x amendment form for federal tax. Now my question is that do I need file an ...
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0answers
23 views

How to report form 1042s information on form 540nr 2019

I'm an international graduate student living in California. This year, I received both W2 and 1042-S forms (Half the year I was on a fellowship grant and the other half I was being an RA). I have ...
6
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0answers
66 views

I'm still working but my payments are deferred due to Covid19. Do I qualify for unemployment insurance benefits?

I'm self-employed in California and my biggest client (>90% of my billable hours) is not able to pay due to cash flow disruptions related to Covid19. I've agreed to continue working and billing as ...
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1answer
88 views

How do I know whether to classify HSA income as dividend or interest?

I live in California, where the interest and dividends earned in an HSA are taxable. They need to be reported on the Schedule CA (540) on line 2 (taxable interest) and line 3 (ordinary dividends). I ...
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1answer
52 views

What are the tax implications of receiving part of one's salary in stock?

In the California tech scene, it's fairly common to have anywhere around 10-60% of a software engineer's income come from shares of stock in one's company. How much of the salary is in stock is also ...
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0answers
47 views

If a single owner LLC is closed in Jan 2020, does the company owner still file a return in 2021?

If someone has single owner LLC in California USA and if he/she closes the company in Jan 2020, do you still have to file business tax return in 2021? Specially if company has elected financial year ...
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1answer
135 views

Is the new COVID-19 Tax Relief for California residents applicable to everyone?

There's news out regarding a 60-day extension for California residents "affected by the COVID-19 virus", but the wording they use is so vague. Everyone was affected. Do they mean directly contracted ...
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1answer
68 views

Tax implications of working from another state due to coronavirus

I work for a company in California which is recommending all employees work from home because of the coronavirus pandemic. I am thinking about working from Michigan instead as an opportunity to visit ...
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3answers
219 views

Should I use Backdoor Roth

I recently got a new job that doesn't have a 401k. I rolled my previous 401k of $30k into a traditional IRA. I plan on contributing $12,000 to retirement this year but I know I can only contribute $...
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0answers
149 views

Earning through Lyft while receiving California unemployment

I've read that some states allow a maximum weekly income while on unemployment. I'm wondering if one is able to earn while on California unemployment, and if so, what the maximum is.
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1answer
70 views

Is interest “earned” in an HSA even without taking any distributions?

I live in California. During 2019 I contributed to a Health Savings Account; I didn’t take any distributions. I’m reading the 2018 instructions for Schedule CA—the 2019 instructions don’t seem to be ...
2
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1answer
228 views

Why did TurboTax underestimate my California state taxable income?

I just received two bills from the state of the california franchise tax board saying that my state tax for 2015 and 2016 are missing a few thousands plus interest. The reason was that turbotax way ...
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2answers
226 views

Paid for motorcycle via credit card, NO dealer documents signed yet and bike has NOT been delivered yet, can i back out?

I want to back out of a purchase of a small motorcycle, but I'm not sure how to proceed. We processed my credit card info to cover the purchase price and taxes on the vehicle 39 hours ago, and now I'...
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0answers
89 views

Can landlord's business expenses be retroactive?

Say, I am planning on moving out of my house and keeping it as a rental. The house needs a bit of work, which I can start before I move out to save on the downtime before I look for renters. Can the ...
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1answer
41 views

Does charity contributions come under itemized deductions of California state w4 form?

I am trying to understand why State of California has no line for charity contributions or I may be something. For example, in the Worksheet B of this form, line 1, it only talks about the itemized ...
3
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1answer
64 views

State income taxes when traveling to another state

I live and work in CA for an employer in San Francisco, but I travel often to FL and work there remotely for a total of perhaps 2-3 months a year. Am I supposed to pay state income taxes to CA during ...
27
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11answers
16k views

How to pay less tax on a high salary?

I'm working as a software engineer in the Bay Area. I file my taxes as "Single" and because of the high salary, I fall into the 32% bracket. Some of my salary goes into a 401(k). What are some ways ...
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2answers
253 views

Car Insurance - Do I need to keep comprehensive insurance after I paid off the loan?

I live in the Bay Area, California. I had to take comprehensive (Liability and Collision) insurance and pay around $500 for six months until I paid off the debt. I recollect that I was required to ...
2
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1answer
326 views

Is there a non-income tax way of my father paying off my house?

My father will soon be moving in with me as he is retiring at the age of 77. We are wanting to pay off my mortgage ($250,000). But we want to do it all in my name because we don't want it to appear as ...
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5answers
2k views

Getting health insurance with the highest deductible and putting the savings in HSA

I'm thinking about getting the highest deductible plan for next year, which would save us a lot of money. With that money, I'm planning to put all the savings (and some more) into our HSA account. We ...
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0answers
44 views

where to fill tax deduction for legal fee related to “related to doing or keeping your job” in form 529?

I filed for extension in april because i didn't have this information but need to file by Oct 15th. I paid around 750 dollars last year to consult lawyers regarding a threatening letter from a former ...
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0answers
54 views

If someone files a claim for short term disability for maternity leave, would future premiums be adversely affected?

If filing a claim for maternity leave does not increase the premiums required in the future, is it because the insurance company is not allowed to use the information, because it is not predictive, or ...
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0answers
87 views

Tax deduction for legal fee in defending my current job related to a threatening letter?

I paid around 750 dollars last year to consult lawyers regarding a threatening letter from a former employer related to company confidential information where they asked me to sign additional ...
42
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7answers
6k views

Is insurance company’s preferred auto shop biased?

I was rear-ended. There's a crack on the upper part of my bumper and the plastic part of the trunk locking mechanism is broken (though the trunk still closes). The insurance company was pretty ...
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1answer
44 views

Deduct business expenses on salary income tax as a married couple

So let's say that one spouse is working full time for simplicity let's say this spouse is making 100k/y and paying 30k/y in income tax. Then let's say the other spouse is running a sole proprietorship ...
6
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0answers
93 views

State Income tax when splitting a day between states (in the USA)

First of all, I realize that when traveling to another state for employment it is commonplace to owe taxes in that state for the work performed+sourced in that state. Example: you work/live in ...
3
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2answers
332 views

Can owning a side business reduce the amount of taxes I pay from my full-time job in the US?

I'm a Canadian on TN status working in California. I've got a good paying job at a tech company and I'm looking for ways to reduce the amount of taxes that I will pay. I'd like to start a small ...
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1answer
69 views

Starting an LLC before it is needed

Have business plans for over a year or two out, however, would like to establish the LLC now and have it sit idle until needed. What characteristics should be selected for creating the LLC at this ...
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2answers
162 views

How are app sales/acquisitions taxed in the US?

Hypothetical scenario: I identify a gap in a company's product offering. I, as an independent developer, write a desktop, web, or mobile application that bridges this gap, and I contact the company in ...
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2answers
181 views

Is it a wise decision to buy a home in the current market in a coastal market where prices are at a premium [closed]

I am looking at the possibility of purchasing a property in the San Diego costal area, however I wanted to get some feedback from people that know the economic outlook better than I would. Is it a ...
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1answer
135 views

If I plan to get investments later, should I start a C Corp now? Or LLC then convert to C later?

Should I start an LLC then convert later once it is time for investments? Or just start as a C-Corp now? At the moment what I have are open source software tools, and ideas on how to monetize them ...
2
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1answer
106 views

Do we need a revocable living trust?

I'm considering setting up a trust for my father but would like a second opinion before meeting with an estate planning attorney. His estate is fairly simple; a home, bank accounts, a CD, a vehicle, ...
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0answers
211 views

How much will my property taxes go up after new construction

Here is the situation: This is in California My family's home was bought 10 years ago at $1,000,000, they are paying over $10,000 in taxes every year. The current market value of the home is around ...
2
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2answers
840 views

What does “Carry the decimal to four places” on line 47 “Deduction percentage” mean in 2016 Schedule CA NR?

If I get 0.93342 after "Divide line 37, column E by line 37, column D", then should I put down 0.9334 or 1.000, given the "Carry the decimal to four places" instruction? When I read "Carry the ...
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0answers
77 views

Rights as joint tenant paying mortgage

In California, my husband and I bought a home in which we are still paying the mortgage. His family (mom, dad and sister) are not paying anything on the mortgage but all 5 names are on the deed. If ...
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1answer
24 views

Can I report all my taxable interest in Schedule CA NR Column E even if I wasn't a resident for the entire year?

Filing 2016 taxes. The place I having a savings account in reported $12 in 1099-INT. I started living in California at the end of January. Will my taxes get rejected if I report all $12 in column E ...
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2answers
200 views

Break even for renting house in California

Hi am trying to figure out what our break even would be for renting out my house in California. All the options with taxes can be a bit confusing so i wanted to ask if have calculated it correctly ...
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1answer
238 views

Do I need business license and account to work as a software contractor

I started a software development contract and decided to open a separate bank account just for this activity. The bank gave me a list of required documents needed when opening a business account for ...
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1answer
108 views

Why is California's income filing threshold GREATER than the standard deduction?

For California, the tax instruction booklet says that you need to file the income tax forms if your income is over $17,693 "gross" or $14,154 "adjusted". However, the state's standard deduction is ...
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0answers
198 views

Can't file taxes probably due to ITIN -> SSN change

I get the following error while filing married filing jointly taxes in California via TaxAct (electronically, paperless): Rule Number: F540/NR/NRS/2EZ-230 Rule Number Description: There is an ...
3
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2answers
353 views

Securing a loan with a loan, does this even make sense?

My friend wants to buy a house; however he does not have the capital to put twenty percent down because he loaned out his capital as a secured business loan last? year. He thinks all other business ...
2
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0answers
71 views

Retiring to Europe from California-Implications for taxes, drivers license & voting

I retired & moved to Italy April 2018. I will be living in Europe for at least ten years. In filling out my California state tax form, there was a question regarding whether I moved out of the ...
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0answers
75 views

Do I have the right to insist on my options being 100% vested if they are for work already performed last year?

I am getting some stock options for work I already finished last year, but they said it needs to vest for tax reasons. My lawyer said I don't have to pay taxes until I exercise my options which ...

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