When it comes to tax audits, the IRS is not the only organization that conducts tax audits. The California Department of Tax and Fee Administration (CDTFA) focuses on sales tax audits among California residents and tax payers. The agency is responsible for administering sales and use taxes, and they use their audits to verify that […]
Read More + Cryptocurrency, or “crypto” as it’s often called, has transformed the financial landscape. Crypto is a digital currency, meaning it runs on a virtual network and does not exist in physical form like cash or coins. Bitcoin is an example of cryptocurrency. While crypto has opened up opportunities in the financial landscape, it has also created […]
Read More + Ecommerce has grown at a substantial rate over the last several years; specifically post-pandemic. With that growth comes new opportunities for business. But, it also comes with increased scrutiny from state tax authorities. In California, that tax authority is the California Department of Tax and Fee Administration (CDTFA), which has stepped up enforcement efforts to […]
Read More + Remote work has been on the rise ever since 2020 and the COVID pandemic. Many individuals went back to an office after it was deemed safe to do so, others took their employment virtual and remained remote workers. While many employees now work from anywhere, California has not relaxed its residency rules. In fact, California […]
Read More + An IRS audit is never something people want to go through. Even the simplest of audits can cause anxiety for taxpayers and business owners. One of the more frequent questions I receive from taxpayers who go through IRS audits is what they can do to challenge the audit findings. Perhaps you disagree with the finding […]
Read More + It’s not uncommon for taxpayers to reach out to me asking whether they are filing their California tax return correctly, especially when it comes to deductions. Many people assume that because they filed their federal tax return with no problems that their California tax will be the same. That’s not necessarily the case. Filing a […]
Read More + Key Takeaways Bonuses = Supplemental Income —In California, bonuses are classified as supplemental wages and subject to special withholding rules rather than treated as ordinary wages. Flat State Rate Applies —A flat withholding rate of 10.23% applies to all bonuses in California, regardless of the employee’s regular income bracket. Two Federal Withholding Methods —Employers may […]
Read More + *The following article was updated in March 2024* If you’re a business owner in the state of California, there are several taxes and regulations that need your attention. It’s critical that you pay attention to the rules and comply with the taxing agencies, or you may end up owing the state money down the road. […]
Read More + Most people don’t want to pay California taxes. They end up contacting me because they are going to move to Florida, Texas or Nevada. I warn them to make sure they actually decided to relocate, move their family, move their house, move their driver’s license, move their car registration. If they’re actually moving and intend […]
Read More + *The following article was updated in November 2023* Lottery winnings are taxable as income at federal and state levels. The IRS applies a 24% federal tax, while California state income tax rates from 1% to 13.3% increase total taxes owed. However, the total tax liability could be higher, potentially reaching up to 37%, which is […]
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