How soon Can you File Taxes In California?

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How Soon Can you File Taxes in California?

How early can you file your tax return in CA, when does the IRS start accepting returns, how can you get started before the IRS opens, and what does this all mean for your tax refund?

 

When is the earliest I can file?

 

Because so many of our clients are excited to get their refunds, we get asked all the time, “When is the earliest I can file my federal tax return?”

 

You cannot technically file your federal taxes until the IRS starts accepting returns. However, you can begin to fill out your return with a pay stub and complete it when you have your W-2 form or other necessary tax documents. Tax-preparation services can also help with this.

 

You can prepare and submit your return as soon as you receive your W-2s from your employers and have all the relevant information and documents. Most W-2s arrive in mid-January, but employers have until January 31, 2020, to send W-2s and Forms 1099, so you could receive yours as late as early February.

In California How Fast Can I Get My Tax Refund In 2020?

If you’re like most Americans, your tax refund feels like the biggest paycheck you’ll receive all year. Learn when you’ll be receiving your refund in 2020, and how you could hurry that process up.

 

For millions of Americans, your tax refund feels like the biggest paycheck you’ll receive all year so filing your taxes is your most important financial transaction.1

Tax Refund Timing

According to the IRS, most refunds are funded within 21 days of filing. This clock starts after the IRS begins processing tax returns for the year, which is usually at the end of January. For the upcoming tax season, the IRS announced that it will open its doors and begin processing returns on January 27, 2020.

However, due to the PATH Act, clients claiming the Earned Income Tax Credit (EITC) and/or the Additional Child Tax Credit (ACTC), should expect a delay in their refunds. Due to tax laws aimed to protect a taxpayer’s identity, refunds claiming EITC and ACTC will begin funding after February 21, 2020. Also, the refund status for those clients may not be available on the IRS.gov website until Feb 21.

It is extremely important to file early so you can get your refund as soon as possible.

You can always ask us to check the status of your refund and well give you a date of expectancy for your return to hit your bank account.

Will Your Refund Be Delayed?

In the end, how quickly you receive your tax refund depends on when you file your taxes, how you choose to file, and what credits and deductions you might claim. While refunds including EITC and ACTC will be funded no earlier than February 21, you will still benefit by filing early. You are giving the IRS plenty of time to review your return, verify your EITC and ACTC eligibility, and W2 authenticity, which is required before your return is processed. Additionally, filing with a tax professional who e-files is safe and secure and will also save you time.

Tax Credits, Deductions, and Getting Your Biggest Refund

One of the first elements to getting your biggest refund is making sure you don’t miss any tax credits or deductions you deserve. If your circumstances have changed from last year, there may be a number of new credits or tax deductions available to you. Because you may not know that you’re eligible, a Tax Pro can help you make sure you don’t leave any money on the table. Visit our Tax Refund Calculator to get your estimate.

Life Changes and Your Tax Refund

Tax credits and deductions are often connected to major life circumstances, so they may change from year to year based on your personal situation. For example, getting married, having a baby, or retiring could all have an impact on your taxes. Don’t miss out on some of these commonly overlooked areas.

The Fast Way to Get Your Tax Refund

There are a number of ways to get money early. Filing as early as possible will give you a better chance of being in the first round of returns processed by the IRS. Electronic or e-filing gets your return to the IRS quicker than mailing a paper return. The sooner they receive your return, the sooner they can begin processing. Choosing to have your refund directly deposited into your bank account instead of receiving a check in the mail is also faster. Another way to get your refund early is to choose to load it onto a prepaid card. Your refund will be available up to two days faster than standard direct deposit. Those two days can mean the difference between getting your refund on a Friday or waiting until Tuesday of the following week. It makes a big difference for most of our hard-working clients.

Starting your tax season early

Most taxpayers count on getting a refund as soon as possible, but sometimes, that is not quick enough. If you rely on your refund to pay bills you may qualify for tax time loans. Book an appointment with Heather’s Bookkeeping and Tax Services to learn more. We are open and ready to help with your tax needs for 2021.

Marijuana is legal in these states 2020 – How will this help your taxes?

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The legalization of cannabis in 2020 will be considered in several U.S. states in 2020. States considered likely to legalize it for recreational use include Arizona, Florida, New Jersey, New Mexico, and New York. Voters in Arizona, Montana, New Jersey and South Dakota cleared cannabis for adult use, bringing the total number of states that have approved it for that purpose to 15.

Question: How do marijuana taxes work?

Answer: Marijuana sales are legal and taxed in nine states. States currently levy three types of marijuana taxes: as a percentage of the price (either the retail or wholesale price), based on weight (i.e., per ounce), and based on the drug’s potency (i.e., THC level). Some states use a combination of these taxes.

 

DO STATE AND LOCAL GOVERNMENTS RAISE FROM MARIJUANA TAXES?

Although prohibited under federal law, marijuana sales are legal and taxed in nine states: Alaska, California, Colorado, Illinois, Massachusetts, Michigan, Nevada, Oregon, and Washington. Marijuana is legal in Maine and Vermont but neither state has established its tax system yet. The District of Columbia also legalized marijuana but Congress currently prevents the city from regulating and taxing sales.

California Marijuana Taxes: 15% state excise tax on retail sales. Cultivators pay $9.25 per ounce for flowers and $2.75 per ounce for leaves. Localities (cities) can levy an excise tax on retail sales.

California’s revenue pays for administrative costs associated with marijuana legalization, and then uses excess funds for programs related to drug use, including economic development, academic studies, and youth programs.

 

Colorado  and Washington have collected marijuana taxes since 2014. In the calendar year 2018, Colorado collected $267 million and Washington collected $439 million in state marijuana taxes, or roughly 1 percent of state and local own-source revenue in each state. Four other states reported a full year’s worth of state marijuana tax revenue in 2018: Alaska ($15 million), California ($354 million), Nevada ($87 million), and Oregon ($94 million). All totals were less than 1 percent of state and local own-source general revenue. (Note: None of these totals include local tax revenue.)

 

Marijuana is legal in 11 new states at the beginning of 2020 and will increase to 15 states in 2021.

Marijuana is legal in 11 new states and some of these states levy a tax on the purchase. But these tax rates are often the same as or close to the state’s general sales tax rate and do not raise much revenue.

HOW DO MARIJUANA TAX RATES DIFFER?

There are three ways state and local governments tax marijuana.

Percentage-of-price. These taxes are similar to a retail sales tax where the consumer pays a tax on the purchase price and the retailer remits it to the state. A few states levy their percentage of price tax on the wholesale transaction, but it is assumed this cost is then passed on to the consumer in the final purchase price. Some states also let localities levy a percentage of price tax—typically with a maximum rate.

Weight-based. These taxes are similar to cigarette taxes, except instead of taxing per pack of cigarettes the tax is based on the weight of the marijuana product. States with this type of tax also typically set different rates for different marijuana products. For example, California  levies a $9.65 per ounce tax on marijuana flowers, a $2.87 per ounce tax on marijuana leaves, and a $1.35 per ounce tax on fresh plant material. As with other wholesale taxes, it is assumed most of this cost is passed on to the consumer in the final purchase price.

Potency-based. These taxes are similar to alcohol taxes, except instead of taxing drinks with a higher percentage of alcohol at higher rates (i.e., liquor is taxed at a higher rate than beer), the tax is based on the THC level of the marijuana product. Illinois is currently the only state with a THC-based tax. It taxes products with a TCH content of 35 percent or less at 10 percent of retail price and those with more than 35 percent at 25 percent of retail price. All marijuana-infused products (e.g., edibles) are taxed at 20 percent of retail price.

Some states also levy their general sales tax on the purchase of marijuana in addition to the excise taxes.