Law Offices of Connie Yi, PC
California
Estate Planning
& Tax Law
Toll Free: 888-312-6978
Website Navigation Menu

Common adjustments for California income tax: part two

Last week we talked about a few common income adjustments that California taxpayers can use. For example, unemployment compensation and some disability benefits are not taxable in the state, which can lead to an adjustment of your taxable income and help you keep more of your money.


While federal tax laws are consistent all over the country, there are several provisions of California's tax code that make this state's taxes unique. It can be confusing to know exactly how to differentiate between your federal and state returns with all of these rules, so consider seeking the help of an expert.

First, if you rent in California you're in luck. The state offers a renter's credit to people who rent property. You may qualify if you have lived in a rented space for at least six months and if your income is less than $35,659 (or $71,318 if you are married filing jointly or head of household). The credit is $60 if you are single or $120 married filing jointly or head of household.

T capital gains tax is also handled differently in California. Many states have a lower tax rate for capital gains but here there is no different rate. If you have a gain on a stock sale that income is taxed just like the rest.

California is also making efforts to collect more "use tax," including adding a line to the personal income tax return for reporting and paying use tax. This allows the state to collect what is basically sales tax on purchases made outside the state.

Source: The Orange County Register, "Understanding California's tax codes," Patrick Harper, March 6, 2013

Our Bay Area law firm helps families and individuals with a range of tax issues, including IRS audits, tax litigation and business and professional deductions and asset depreciation.

No Comments

Leave a comment
Comment Information

Contact Us Now to begin your initial consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

Office Locations

Law Offices of Connie Yi, PC
490 Post Street, Suite 508
San Francisco, CA 94102
Phone: 415-433-3350
Toll Free: 888-312-6978
Map and Directions

Additional Office Locations:
Pleasanton
323 Ray Street
Pleasanton, CA 94566
Phone: 925-484-0888 
Pleasanton Law Office Map

San Mateo
1900 S. Norfolk Street, Suite 350
San Mateo, CA 94403
Phone: 415-433-3350
Map and Directions

Sunnyvale
1250 Oakmead Pkwy, Suite 210 
Sunnyvale, CA 94085 
Phone: 888-312-6978 
Map and Directions