State Tax Relief for California Winter Storm Victims

The Franchise Tax Board (FTB) announced special tax relief for California taxpayers affected by the recent winter storms in California.

The December 17, 2010 through January 4, 2011, storms were declared a Federal disaster in 10 counties on January 26, 2011. The federal major disaster declaration was amended on March 3, 2011, adding two more counties. Affected taxpayers are able to claim disaster losses in the current or the prior tax year. Claiming the loss on a previously filed tax return allows FTB to issue refunds quickly.

Counties declared a major disaster area are: Inyo, Kern, Kings, Madera, Mariposa, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Tulare counties.

Taxpayers claiming the disaster loss should write California Winter Storms 2010 in red ink at the top of their tax return to alert FTB to expedite the refund. If taxpayers are e-filing, they should follow the software instructions to enter the disaster information. Taxpayers can get FTBs amended 2009 tax return or original 2010 tax return at FTBs website, ftb.ca.gov.

Taxpayers needing copies of lost or damaged state returns should complete Form FTB 3516, Request for Copy of Tax Return, available online. Disaster victims can receive copies of tax returns for free. Print California Winter Storms 2010 in red ink at the top of the request.

To learn more about disaster losses, refer to publications FTB 1034 Disaster Loss at ftb.ca.gov or the IRS 547, Casualties, Disasters, and Thefts at irs.gov.

PLease contact me if you have any questions at (209) 329-1255 or by email.

More IRS Form Delays

Today, many of the IRS forms were released for electronic filing (E-File), including teacher's/educator expenses, Schedule A - Itemized Deductions, and many others.

However, some forms are still not released and returns cannot be E-Filed yet. One of these forms includes Form 982 - Insolvency Worksheet. This affects those of you who may have cancelled debt and must include the reported amounts as income, except when you are "insolvent" and have not filed Bankruptcy.

If you have any questions about your return, please call me at your convenience.

Our new extended hours are 7 a.m. to 9 p.m. daily.

Major Tax Law Changes for 2010

On December 17, 2010, President Obama signed into law a two-year extension of the reduced individual income tax rates from the previous Bush Administration. This gives us much needed releif for the laws that were expiring. Here's how it impacts you:

Individual Taxes- Marraige penalty relief rate reduction is extended
- State and local sales tax deduction continues
- HOPE education credit extended and renamed to American Opportunity Tax Credit
- Self-employed continue to claim health insurance deduction
- Unemployment benefits exclusion: you may exclude $2400 of UE benefits
- Child tax credit remains at $1,000 per child for 2011 and 2012
- Capital gains and dividends will continue to be taxed at a max rate of 15%
- AMT liability is offset by their nonrefundable tax credits in 2010 and 2011
- Employee share of OASDI is reduced from 6.2% to 4.2% for wages paid in 2011

Estate Taxes- the maximum rate continues to be 35% until 2013, when it increases to 55%
- Gift Tax: 35% maximum

If you have any questions regarding these changes and any other Employer/Business related changes, please give us a call or e-mail us anytime!

Call soon for your tax appointment!

It's Tax Time!

Happy New Year! It is tax time again, and we are here to serve your needs!

Special Offer: Refer a friend and receive 25% off your tax return fees!

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