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California State Income Tax Brackets and How Your Income Is Taxed

The tax brackets used to calculate how much you will pay in California state income tax operate similarly to the federal income tax brackets; taxpayers with lower earnings pay less in taxes while those with higher earnings will climb the brackets. The percentage of tax that is paid in each bracket is of course lower than the federal brackets (though California state income taxes are among the highest in the country). Understanding what tax bracket you fall into will help you determine whether you need to make estimated tax payments, adjust the amount of tax withheld from your paycheck, or how much of that pay raise will be taxed at the next bracket.

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Employment Development Department: California Payroll Taxes

Whether you’re a small business with few employees or a large company with several hundred, understanding the cost that comes with having employees is essential. Many employers focus on the wages that will be paid but, they often neglect to consider the tax obligations that are attached to those wages. Though payroll taxes are more significant at the federal level (IRS) it is just as important to know what is happening at the state level. In this blog, we will discuss some initial steps that must be taken when hiring a new employee, what taxes must be withheld from the employees wages and how those calculations are done in the State of California.

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California Franchise Tax Board – FTB Collections

California has a unique tax system, which is managed by several different tax agencies. Each tax agency handles a specific area of tax law, which includes income tax, sales tax, property tax, and employment tax. Within each tax agency, there is a department dedicated to collecting tax debts owed. In this blog, we are going to focus on the agency that manages California’s income tax laws – the Franchise Tax Board (“FTB”). More specifically, we are going to review the tools the FTB has at its disposal to collect delinquent tax debts.

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Five Things To Know About Discharging IRS Tax Debt In Bankruptcy

The thought of filing bankruptcy can be scary and many people struggle with the decision of whether to file bankruptcy. However, bankruptcy is not as ominous as everyone believes. The fact is, bankruptcy can give you some breathing room to get your financial situation back in order and even discharge some or all of the debts that are too overwhelming. One of those debts may even be tax debt.

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What You Need To Know About Franchise Tax Board Wage Garnishments

It’s the end of the week. You’ve worked hard and are ready to receive your paycheck but, when the check comes your employer hands you something else. That’s when you find out your next paycheck is going to be garnished. Perhaps you’re aware you owe back taxes to the IRS but haven’t figure out a solution. You look at the notice your employer handed you and it’s not the IRS come to collect. Instead, it’s the Franchise Tax Board (FTB). Much like the IRS, FTB is able to take different types of collection action against taxpayers for unpaid taxes; one of the most common being a wage garnishment. In fact, the FTB may actually be more difficult to deal with than the IRS for a number of reasons.

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Five Things To Know When Dealing With An IRS Revenue Officer

Many taxpayers who have experienced owing back taxes to the IRS have never had to deal with a Revenue Officer. Having a Revenue Officer assigned to collect back taxes doesn’t have to be as scary as it sounds but, it can be intimidating for someone who has never dealt with one before. That’s why we at Spaulding Legal, APC thought we would outline some of the most important things to keep in mind when dealing with a Revenue Officer based on our own experiences in handling these cases.

When to Hire a Tax Attorney

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