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California Tax Law Questions & Answers
1 Answer | Asked in Employment Law and Tax Law for California on
Q: Ca Judicial Council intercepted my CA state tax refund this year to satisfy a wage overpayment from my 2016 retirement.

I never received notice regarding an overpayment. They say they sent it but is was returned. I moved in 10/2017, mail was forwarded for 6 mos after that. What type of notice is required? Does this violate the 3 year statute of limitations under Gov Code s 19838?

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answered on Nov 13, 2023

Under California law, proper notice is typically required before intercepting a tax refund for a debt such as a wage overpayment. The entity claiming the overpayment must make reasonable efforts to notify the debtor, often through mailed notices. If a notice is returned, further steps may be... View More

1 Answer | Asked in Tax Law for California on
Q: Is a gift of a significant amount being taxed in the US if I receive it from a sibling living abroad in my home country
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answered on Dec 17, 2024

In the United States, recipients generally don't pay federal gift tax - instead, the person giving the gift is responsible for any tax obligations. However, you should be aware that international gifts over $100,000 from foreign individuals must be reported to the IRS using Form 3520.... View More

1 Answer | Asked in Social Security, Tax Law and Public Benefits for California on
Q: Will the IRS tax my disability?

I've been receiving temporary state disability for the past year, and as you know that is not taxable income. However I received a letter stating that my disability payments will be reported to the IRS. When I contacted the disability office they said there is some rule that if you collected... View More

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answered on Dec 12, 2024

Your state disability benefits are generally not taxable if they come from a state welfare fund and you didn't get any employer contributions. The fact that you had an open unemployment claim but received no payments shouldn't trigger taxation of your disability benefits.

Since...
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1 Answer | Asked in Tax Law for California on
Q: Hi, I received a tax bill from 2021 for the franchise board of California. However I did not live or work in CA then.

I lived in Florida and filed taxes jointly with my husband that year as Florida residents.

I have never received a bill for this, or was it added to the taxes we've owed in the past, which we alway pay on time.

I never worked in the year 2021, even in florida. The tax bill... View More

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answered on Nov 20, 2024

This sounds like a case of potential identity theft or administrative error, especially since the first name doesn't match your records. Your first step should be to contact the California Franchise Tax Board directly at 800-852-5711 to dispute the bill and explain your situation.... View More

2 Answers | Asked in Family Law, Personal Injury, Real Estate Law and Tax Law for California on
Q: I need to reopen a case

Due to non disclosure , fraud , conspiracy and perjury

Robert Kane
Robert Kane
answered on Oct 30, 2024

It will be challenging to reopen a case based on allegations of non-disclosure, fraud, conspiracy and perjury. JA will likely provide you some AI generated promotional information. You will need to contact an attorney directly if you want a honest evaluation.

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1 Answer | Asked in Tax Law for California on
Q: My CA home is in my trust. If my trustee sells my home after I have died what are the tax consequences for my trust.

home bought for $1.5 million. Assume sales price is $3 million.

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answered on Oct 8, 2024

When your trustee sells your California home after your passing, the trust benefits from a step-up in basis. This means the property's value is adjusted to its fair market value at the time of your death, which in this case is $3 million. Since the home is sold for the same amount, there would... View More

1 Answer | Asked in Tax Law for California on
Q: Per prop. 13 my property was reassessed and i do not feel a change of ownership occurred. I contested and had a hearing

With board of supervisors. They denied my request/ voted no on change of ownership not occurring. Can i contest this any other way? If my change on deed was for financial reasons then no change to initiate reassessment. I put boyfriend on deed to get well drilled thru gov. Grant for indians as... View More

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answered on Oct 2, 2024

I'm sorry you're facing this challenge. After the board of supervisors has denied your request, you still have a few options to consider. You can appeal the decision to the California State Board of Equalization, which oversees property tax disputes and may provide another opportunity to... View More

1 Answer | Asked in Business Formation, Business Law, Civil Litigation and Tax Law for California on
Q: Can i start a business without being documented in the US ? im an illegal immigrant
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answered on Oct 1, 2024

Yes, you can start a business in the U.S., even if you're undocumented. There are no specific laws that prevent undocumented immigrants from owning and operating a business. The U.S. tax system allows anyone, regardless of immigration status, to apply for an Individual Taxpayer Identification... View More

1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: i received a distribution from an estate rental home sale the trustee and executor did not pay the estate debts.

Do i have to pay taxes on the this distribution if I am paying the debts of the estate? Since I am not using this distribution for myself and only to pay the debts of the estate to avoid a foreclosure of a second home in the estate how do i protect myself from taxes

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answered on Sep 26, 2024

When you receive a distribution from an estate, it may be subject to taxes depending on the type of distribution and your overall tax situation. The fact that you're using the distribution to pay estate debts doesn’t automatically exempt you from taxes on the distribution itself. The IRS... View More

1 Answer | Asked in Tax Law for California on
Q: Started an internship on OPT, aside from w4 and i9 what else must be filled out by F1 holder from India

On OPT, would I need to fill out a form 8233 or w8ben form

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answered on Sep 22, 2024

If you’re an F-1 holder from India working under OPT, you may need to consider additional forms beyond the W-4 and I-9 for tax purposes. One form to consider is IRS Form 8233, which applies if you wish to claim a tax treaty benefit between the U.S. and India. This could help reduce your... View More

1 Answer | Asked in Tax Law for California on
Q: I am the trustee of a Washington state trust and live in California. Will the CA FTB try to tax the sale.

WA state has a tax on home sales, cant pay tax two times. Seems like the only tax I should have to pay is when I take a distribution.

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answered on Sep 19, 2024

When serving as a trustee of a Washington state trust while living in California, you could face potential tax complications from both states. California's Franchise Tax Board (FTB) may attempt to tax the income if it considers the trust a "resident trust," which depends on factors... View More

1 Answer | Asked in Tax Law, Business Formation and Business Law for California on
Q: What do I need to do with my c-corp after relocating to California from Illinois?

A few years back, I had incorporated a c-corp in Delaware, registered as a foreign entity in Illinois, and had a physical office with employees. Post-COVID, my business became 100% remote. I am currently the only W2 employee on the company’s payroll, with Illinois state taxes being deducted. I... View More

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answered on Sep 16, 2024

When relocating your C-corp to California, you need to register it as a foreign corporation in California since you are now operating from there. This involves filing specific forms with the California Secretary of State and potentially paying applicable fees. You may also need to withdraw your... View More

1 Answer | Asked in Tax Law for California on
Q: Before my mom passed away she invested in a 1031 exchange for tax reasons. Is there any way to cash it out?

its called a Zero Coupon VIII DST and has something to do with CVS pharmacies.

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answered on Sep 7, 2024

When dealing with a Zero Coupon VIII DST (Delaware Statutory Trust) investment, especially after a loved one’s passing, cashing it out can be complicated. A 1031 exchange is a tax-deferred strategy, meaning if you cash it out now, you might face significant capital gains taxes on any... View More

1 Answer | Asked in Tax Law for California on
Q: I have been hired as an as-needed "individual/sole proprietor or single-member LLC" (W9) & don't know how to proceed re:

taxes.

I will get paid for mileage while on shift, but not for weekly 24-mile RT supply pick-ups/cash drop-offs.

I have also purchased a dedicated iPad, as they require apps in which i must give rights to pretty much absolute control over my device, and hence, I do not wish to use... View More

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answered on Aug 26, 2024

As an independent contractor (IC) in California, you're responsible for managing your own taxes, which includes setting aside money for both federal and state income taxes, as well as self-employment taxes. Since you've already established a sole proprietor LLC, you'll report your... View More

1 Answer | Asked in Tax Law and Internet Law for California on
Q: Is it legal in california for an online company based in California to charge tax on shipping?
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answered on Aug 23, 2024

In California, whether sales tax applies to shipping charges depends on how the charges are stated on the invoice and the nature of the transaction. If the shipping charge is separately stated from the price of the goods on the invoice, it is generally not subject to sales tax. However, if the... View More

1 Answer | Asked in Probate, Real Estate Law and Tax Law for California on
Q: . Court Calendar shows l as being decedents estate. Than sec petition state grandmother estate probate

So first file has I named decedents estate with same case number showing sec petion with grandmother referee probate and out come only shows that 2 relatives requested to be Administrator s but does not anything else about my I as the decedents estate and both files are same case number and never... View More

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answered on Aug 19, 2024

To address the situation with the estate and the alleged fraud, you'll need to take immediate legal action to protect your rights and interests. Start by gathering all relevant documents, including the court records, petitions, and any evidence of title fraud or misuse of power of attorney.... View More

1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: I have 2 houses, if I sell the second house and pay off my current house,

can I use the rest of equity to upgrade my current home and avoid taxes?

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answered on Aug 16, 2024

If you sell your second house and use the proceeds to pay off your primary residence and upgrade it, there are still tax implications to consider. In California, when you sell real estate, capital gains tax will generally apply to any profit made on the sale, unless you qualify for specific... View More

1 Answer | Asked in Employment Law and Tax Law for California on
Q: What can I do about my employer messing up my paycheck ?

My employer is not going by the information I input on my W4, as a result, federal taxes are wrongfully being withheld from my paycheck.

He is refusing to fix it, what can I do ?

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answered on Aug 15, 2024

If your employer is not following the information on your W-4 form and is wrongfully withholding federal taxes, you should first document the issue. Keep records of your W-4 submission, your pay stubs, and any communications with your employer regarding the withholding errors. This documentation... View More

1 Answer | Asked in Tax Law for California on
Q: FTB aggressive, penalties for income never earned for a mortgage in my name. How 2 prove with nothing 2 prove. ruined

I’m having trouble with the franchise tax board in regard to them stating I owe taxes for certain years because I never filed. I was in a situation with somebody claim me had a household for many many years never filed because I never had to. I haven’t been working I’ve explained this to them... View More

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answered on Aug 12, 2024

Dealing with the Franchise Tax Board (FTB) can be overwhelming, especially when you're facing penalties for income you never earned. To begin addressing this, gather all documentation that shows your financial situation, including your EBT records, any unemployment records, and any other proof... View More

1 Answer | Asked in Tax Law for California on
Q: Can IRS wipe out your account without any notice of possible garnishment?

Today the IRS took everything out of my saving me with $1.46 in my account. I didnt file my taxes in 2021 because i was under the minimum earning line. They completely left me with nothing but $1.46, WITHOUT ANY PRIOR NOTICE. They took out all my cash and its impossible to have that much money... View More

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answered on Aug 9, 2024

It’s incredibly frustrating and scary to find your account wiped out like that. The IRS is required by law to send multiple notices before they levy your bank account, including a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. If you didn’t receive these, something may... View More

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