CA State Tax
CA State Tax differs from the federal tax laws in many ways, so it’s prudent to research California state tax if you’re new to the state or on your way.
California has always had its own distinct way of doing things. In fact, California has long been the trend setter for most of the style we see in American culture, especially that of the last ten years. It comes from the west, and New York with a dash of Miami, but most of our current social ideals were forged in none in other than sunny California. So what about California state taxes? Well, they’re a little different.
There are many forms of income that are exempt from state taxes such as:
- Unemployment compensation
- Social Security and other retirement benefits
- State income tax refunds
- Paid family/maternity leave
- Many other forms of income as well
The thing about CA state tax is that they don’t allow many of the tax deductions that other states do. Some examples of the deductions that California state tax laws don't allow are: adoption expense deduction, federal estate taxes, educational expenses (teacher supplies, principal supplies etc), higher education expenses, and other deductions and programs offered elsewhere.
The CA state tax rates start at 1.25% and max out at 9.55%.
The governor of California, Arnold Schwarzenegger signed a bill that will give tax relief to Californians that have mortgage debt on their main home. Of course they also offer many deductions and breaks that other states don’t, such as interest on loans from utility companies.
Like anywhere else, most of you have by the middle of April to file your income taxes without invoking penalties and fees.
For more information, tap a respected source of tax information like TurboTax Online. Browse through endless articles full of all of the tax-related info you could ever hope for.
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