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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0answers
27 views

Can a US LPR who changed their residency from California to Washington between Nov 2021 and summer 2022 opt ​out of the Washington long-term-care tax?

Can a US lawful permanent resident who changed their residency from California to Washington state between November 2021 and summer 2022 opt out of the newly established long-term-care payroll tax? E....
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1answer
57 views

Clarification regarding CA source income for non-resident

I am filing taxes for 2020 as CA non-resident because I have provided a CA address on my US trading account. I have foreign earned income, foreign interest, dividends from the trading account, and US ...
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Does California Homeowner's Insurance provide Workers' Compensation Insurance for a Nannyshare hosted in another family's residence?

If a nanny in California cares for the children of Family A & Family B, primarily within the home of Family A, will Family B's homeowner's insurance include workers' compensation insurance for the ...
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1answer
179 views

I have 5 cars and two drivers, can I cover one car with high liability and the rest with the minimum? California

We are family with lots of cars, 5 and only two drivers. We switch off depending on what we are doing. Commuting, I drive my 2 seater and wife drives her suv. Family outing we take our big sedan, trip ...
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1answer
632 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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22 views

Will stock options continue to vest if an employee goes into State Disability Insurance (SDI)?

If an employee in a publicly traded company needs to go on SDI (to get treatment) will the employee continue to vest options (ISOs, RSUs)? Is SDI like a sabbatical from a company's perspective where ...
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1answer
93 views

purchasing a car with a trial period

A stranger is selling their car for $5000 and I like it for that price. But, instead of a straight purchase, I want to arrange a deal in which I pay $5000 in full now (without any loans) but can ...
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1answer
75 views

What should my state tax withholdings be? I live in VA and work remotely for a CA company

I work remotely for a company in California, but I'm a Virginia resident 100% of the time. This is my first year working for this company. Last year, I claimed 1 exemption on my VA taxes (myself). For ...
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1answer
171 views

Why did I receive tax penalty on paid family leave from the California tax board?

I just received a notice from California tax board that says I owe state tax on the deduction I claimed in 2017 for paid family leave. This was filed through turbotax so I assumed it was accurate. I ...
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1answer
130 views

How to avoid the $800 minimum franchise tax as a California resident with out-of-state business?

Assume a California resident sets up an out-of-state trust, which in turn is the only member (and manager) of an out-of-state LLC for business in another state (e.g. holding rental properties outside ...
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What do I do after requesting and receiving a debt validation letter for a medical debt I don't recognize?

I received a debt collection call a few months ago from a professional debt collector for a debt I didn't recognize, followed by a written notice. I wrote back that I dispute the debt and requested ...
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2answers
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Is the donation of billable or paid time of a contractor or employee tax-deductible?

In California, USA, for federal and state taxes, are services performed by a paid employee or contractor (who receives compensation for that time from the company as regular/overtime wages/salary or ...
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1answer
69 views

How to respond to CA 2020 tax penalty notice? I forgot to indicate I had health coverage

I received this mail yesterday: PICTURE OF MAIL I am a student with F1 visa status and filed both federal and state taxes for 2019 and 2020. I do have an external scholarship that includes a very good ...
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CA Tax return change - missing 3853

I am a non resident for the entire year in the US for the year 2020. I however do have some residual income coming in from shares vested on me previously when I was working in the US. So I continue to ...
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1answer
1k views

Unemployment eligibility for U.S. citizen working overseas for California based company

I received word I will be getting laid off at the end of the year. I currently work overseas for a California based company. I am a U.S. citizen and will be returning to CA (my home state) due to ...
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2answers
3k views

No provision for beneficiary at HSBC

Background: My wife and I live in California (if that matters) and have a living trust. My wife and I recently opened an online savings account at HSBC. APY is 2.01 which was the motivation. HSBC ...
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1answer
76 views

Which mailing address to use for disputing a California Franchise Tax Board 5818 Notice?

I just got an FTB 5818 Notice saying that I don't have Health Insurance. I am planning to dispute it by sending in my 1095-B. Question: Which mailing address should I be using: Franchise Tax Board PO ...
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3answers
371 views

After paying off your home, could you sell it to a confidant for $1, then buy it back for $1 in order to get lower property taxes in CA?

In California, property taxes are based upon the price that you paid for your home. Would it be legal, or even feasible, that when you finally pay off your mortgage, that you sell your home to a ...
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2answers
170 views

Can I protect jointly owned assets from my spouse's professional liability? [closed]

My wife is a medical resident. She regularly makes complex decisions that could kill someone while she is chronically sleep deprived. Obviously, this is dangerous, but it's a nationwide problem that I ...
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1answer
27 views

Webpay for CA tax return not allowed owing to absence of previous records

I want to pay to CA state through web pay my tax due for 2020, but I am not allowed to register because I don't have a previous tax return. I am filing as non-resident alien. How can I make this ...
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1answer
24 views

Can one qualify for the Young Child Tax Credit if they don't qualify for the Earned Income Tax Credit

In USA California State income tax if one knows they don't qualify for the Earned Income Credit (EITC) can they also deduce that they are also not eligible for the Young Child Tax Credit (YCTC)? ...
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Are state disability benefits taxable in tax year when you were eligible for them, or approved for them, or when benefits were actually paid?

Imagine that someone gave birth on November 5th, 2020. California allows moms to take off up to 8 weeks of disability insurance benefits. Are such state disability insurance benefits taxable in 1) tax ...
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1answer
33 views

Is there a solar tax credit or deduction in California for year 2020?

I can't find info on this anywhere. Bought a new solar power system for my primary residence for $65k in July. I'm using Turbo Tax
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1answer
97 views

Transfer 529 Funds from Child's Account to Pay Parent's Existing Student Loans?

We have been saving a little every month into our daughter's 529 account since she was born. She is now 10 years old, and the account balance is about $25,000. We intend to continue to make regular ...
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1answer
131 views

Itemizing charitable deductions on California taxes while taking standard deduction + 2020 charitable deduction on federal taxes

This question is pretty specific, but it's worth a try. Apologies in advance for the length; I'm aiming to be as clear as possible. In 2020, as a provision of the CARES Act, it is possible to take the ...
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2answers
182 views

Handling rent debt in California

Due to the pandemic, I was unable to pay rent for my apartment complex that I have now moved out of. I do not have the money to pay this debt because I was unemployed because of the pandemic. ...
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5answers
11k views

what is a UPS/FedEx accepted physical address for the California Franchise Tax Board

I need to file my California tax returns but am living abroad. I was told that I can only use FedEx/UPS to send my tax returns, but the California Franchise Tax Board only has a PO box address where ...
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0answers
43 views

Income taxes - Changing state of residence before moving out of the US

I'm an European citizen working for in the US with a 2 year contract; I was and will be a non resident alien for 2020 and 2021, but RA in 2022; I have to contribute to a retirement fund (it's a 401(a),...
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2answers
84 views

If I move out of state for 6 months to work remote, how do I setup my tax residence?

Currently my wife and I are living in California. I work remote for a company there. I am not a US citizen but I have an EAD (work authorization) in case it matters. So for now, I have been a ...
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0answers
88 views

Can home solar power installations be deducted as a business expense?

I run computer servers at home 24/7, and my home is in California. To power them, I would like to install solar panels and home battery backup system. Can I deduct this as a business expense for my ...
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2answers
82 views

Is CA FTB not in breach of IRS rules by demanding ITIN?

The IRS declares in many documents that: "ITINs are IRS assigned numbers issued only for federal tax administration purposes" and "ITINS do NOT Serve as identification outside the ...
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1answer
60 views

W-2 from company despite no longer a current employee

I last worked for this company in August of 2019. I am trying to file my taxes for 2020. I received a W-2 for 2020 because I received a direct deposit from this company in March of 2020. I believe ...
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1answer
132 views

Is an individual who hasn't been in California in 2019 but is domiciled in California throughout 2019 a California tax resident?

I read on Page 4 of FTB Pub. 1031 2019 (mirror) (I italicized the important passages): [Section E:] Who Are Residents and Nonresidents A resident is any individual who meets any of the following: ...
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1answer
8k views

How does AMT/state taxes work for stock options in California?

I'd like to know how to roughly calculate tax for stock options, for the following fictitious scenario: Suppose Little Susie joined a rare private company in California as a normal employee, and ...
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2answers
912 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
92 views

Working in 2 different states: does the California income tax rate only consider the money earned in California, or anywhere?

For example, let's take Bob who: worked from January to March in California, where he earned 30kUSD (W2 income and Bob was a California resident), worked for the rest of the year in the state of ...
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2answers
3k views

If someone had purchased some stocks prior to leaving California, then sold these stocks outside California, do they owe any tax to California?

If an individual moves from California to another US state and had some RSUs granted before leaving California, then they'll owe some taxes to California (mirror): Allocation Ratio = (total workdays ...
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28 views

irrevocable trust - property taxes

I am the trustee of an irrevocable trust, in this trust are two single resident homes with no mortgage. Recently, one home was taken out of this irrevocable trust to get a loan/mortgage. With this ...
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2answers
96 views

Just engaged! What tax filing options do I have as sole household earner

I'm recently engaged, which is good. But this presents a quandry. I make 100% of the money for our household, and we've been living together for nearly 2 years now. Tax wise, this kind of sucks. My ...
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2answers
96 views

Will I get double-taxed? Primary address in North Carolina but work is in California

Disclaimer: I am aware that users here are not paid/licensed U.S. tax professionals and that I should only make decisions impacting my taxes with a licensed financial advisor. Hi! I have a job in ...
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1answer
86 views

Sales Tax on Trades

I traded my laptop for my neighbor's TV. We live in Los Angeles, California. Do we owe any sales tax to any government?
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4answers
5k views

Paying property taxes at refinance closing

I'm refinancing my existing mortgage, just to lower my payment, no cash out, in California. I currently have an impound account to pay for taxes and insurance but don't plan on having one for the new ...
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1answer
105 views

Are employers who got their PPP loan on a later date better off than those who got it early?

My understanding is that payroll expenses that would be eligible for PPP loan forgiveness must be incurred immediately within the next 8 weeks when PPP funds appeared in the employer's bank account. ...
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2answers
7k views

Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a year?

I started working for Doordash, a food delivery service. Technically I think I am a self-employed contractor. I saw online that you don't have to declare taxes if you make less than $12,200 in a year. ...
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1answer
93 views

If an employee works from outside California but is declared by the company as working in CA, from how many days outside CA does it become an issue?

US companies need to know the location of their employees for tax and benefit purposes, while some US and non-US companies manage to allow some of/all their employees to work remotely. Assume that the ...
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3answers
278 views

How do I avoid forming a general partnership while splitting income 50-50 with someone else?

You can see a lot of context by reading here: Every month I make money from Patreon. I want to split my income with a partner. How do I avoid paying taxes on 100% of the income? I don't have an LLC (...
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1answer
62 views

How much do i owe the IRS on Sept 15th for income received in September?

Sold a house at end of August. Cap gains of about $240k to $375k (federal + California) income tax will be due. How much should I pay Sept 15th, 2020?
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2answers
193 views

Risks when buying property with illegal granny unit?

Property I am looking at has 1000 square feet illegal granny unit. Main house has 4000 square feet. If I would buy property as-is and later attempt to legalize the granny unit as living space, then ...
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0answers
41 views

Property, income and capital gain taxes for buyer when home bought under "option to buy" contract?

Seller messed up advertising on house and needs few more months to bring few things up to code before he can sell. Hence as alternative solution seller is offering to rent out home to prospective ...
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5answers
3k views

Is there any way to form an anonymous General Partnership?

Update: When I say anonymous, I don't necessarily mean from the IRS (although that would be ideal). I mean anonymous from the general public. I don't want anyone to be able to look up my real name and ...

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