The California Franchise Tax Board, which administers California's individual income tax and corporate franchise tax, has announced it will conform to the federal extension of time to May 15, 2023 for making payments and filing income tax returns that are due during the period January 8 to May 14, 2023.
Tax tips and developments relating to individuals
The filing deadline for federal individual and business income tax returns (including Form 5500) of certain California taxpayers with a due date on or after January 8, 2023 is extended to May 15, 2023.
Here are some highlights of the retirement account provisions of SECURE 2.0 Act of 2022.
The 50% penalty for failure to make a required minimum distributions is waived for failure to make a required minimum distribution from an inherited retirement account for 2021 and 2022 when the account was inherited after 2019 and the participant died on or after the required beginning date.
Although the provisions are significant, I think you can see these provisions won't have a significant impact on most taxpayers' income tax returns, possibly with the exception of the expanded premium tax credit.
The tax consequences of fraud on the victims are complex and usually aren’t good news.
The passthrough entity tax is a workaround for the $10,000 individual income tax limit on the deduction for state taxes adopted in the Tax Cuts and Jobs Act of 2017. On February 9, 2022, Governor Newsom signed SB 113, which fixes some of the issues with California's passthrough entity tax.
According to 2020 FTB Publication 1001 (Revised November, 2021), page 13, the federal reduction of wages doesn't apply on the California income tax return.
According to the Notice, whether wages of controlling owners of a business and their spouses qualify for the employee retention credit depends on whether they have certain relatives.
Many high income and high net worth taxpayers will be relieved to learn that Biden's major revenue proposals are NOT included in the agreement.