Do you have to pay taxes on cryptocurrency or bitcoin?

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GET HELP WITH PAYING TAXES ON CRYPTOCURRENCY AND YOUR BITCOINS

What is CRPYTOcurrency OR Bitcoin?

cryptocurrency is a digital representation of value, other than a representation of the U.S. dollar or a foreign currency (“real currency”), that functions as a unit of account, a store of value, and a medium of exchange.  Some virtual currencies are convertible, which means that they have an equivalent value in real currency or act as a substitute for real currency.  The IRS uses the term “virtual currency” in these FAQs to describe the various types of convertible virtual currency that are used as a medium of exchange, such as digital currency and cryptocurrency.   Regardless of the label applied, if a particular asset has the characteristics of virtual currency, it will be treated as virtual currency for Federal income tax purposes.

The IRS will recognize a gain or loss with cryptocurrency and bitcoin

Yes.  When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses.  For more information on capital assets, capital gains, and capital losses, see Publication 544, Sales and Other Dispositions of Assets.

 

Heathers Bookkeeping and Tax Services have forms about paying taxes on cryptocurrency and bitcoins. The 2020 form 1040 asks whether any time during 2020, did you receive or sold or sent, exchanged or otherwise acquired any financial interest in any virtual currency. No. If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.

 

How do you determine if my gain or loss is a short-term or long-term capital gain or loss?

If you held the virtual currency for one year or less before selling or exchanging the virtual currency, then you will have a short-term capital gain or loss.  If you held the virtual currency for more than one year before selling or exchanging it, then you will have a long-term capital gain or loss.  The period during which you held the virtual currency (known as the “holding period”) begins on the day after you acquired the virtual currency and ends on the day you sell or exchange the virtual currency.  For more information on short-term and long-term capital gains and losses, see Publication 544, Sales and Other Dispositions of Assets.

 

If you invested in crypto last year, you may have to pay taxes this year.

Yes, your Bitcoin, Ethereum, and other cryptocurrencies are taxable. The IRS considers cryptocurrency holdings to be “property” for tax purposes, which means your virtual currency is taxed in the same way as any other assets you own, like stocks or gold. And the start of tax season is right around the corner — Jan. 24, 2022 to be exact.

2021 was a big year for crypto, with many new investors buying in for the first time. More than half of current Bitcoin investors began investing in the last 12 months, according to a recent study by Grayscale Investments. The crypto market hit multiple all-time highs and lows throughout the year, leading to large gains and losses for many investors.

 

We can help with your Crypto Taxes or Bitcoin Taxes

CALIFORNIA BILL PROVIDING TAX BREAKS TO FIRE VICTIMS

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BUTTE COUNTY FIRE RECOVERY TAX UPDATE

Bill to Provide Tax Relief for Fire Victims Passes First Committee

 

The Assembly Committee on Revenue & Taxation recently passed AB 1249, Assemblyman James Gallagher’s (R-Yuba City) legislation that would provide financial relief to wildfire victims by exempting them from paying state taxes on settlement payments made out of PG&E’s “Fire Victims Trust”. 
Gallagher said, “AB 1249 is a straightforward fix that would clarify state tax exemption criteria for victims of three of the most destructive fires in California’s history. Victims deserve to receive the maximum amount of compensation possible from PG&E, especially in light of recent reports that the trust might not be able to pay victims the full settlement amounts they were originally promised.”

PG&E’s “Fire Victims Trust

PG&E’s “Fire Victims Trust” was created to compensate victims of the 2015 (Butte), 2017 (North Bay) and 2018 (Camp) wildfires. AB 1249 would clarify California’s tax code to allow all types of filers to be excluded from paying state taxes on advance settlements paid out of the trust.
The bill now moves to the Assembly Appropriations Committee for a hearing later this month.
AB 1249 is co-authored by Senator Jim Nielsen (R-Tehama), Senator Bill Dodd (D-Napa), Senator Brian Dahle (R-Bieber), Assemblyman Frank Bigelow (R-Madera), Assemblywoman Megan Dahle (R-Bieber) and Assemblymember Marc Levine (D-San Rafael).

 

NEW 2022 TAX REFUND RETURN DATES – WHEN WILL YOU GET YOUR TAX REFUND IN 2022 FROM THE IRS

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NEW TAX REFUND RETURN DATES 2022

Will the 2022 tax filing season be normal? it’s not likely that when Spring 2022 comes around that everything will be like it was in 2019 or before. Covid-19 will still be a concern, several stimulus tax laws will still be challenging for some filers, and new tax laws may very well be created between now and then that add more complexity.

[The estimated refund date chart is below if you just want to scroll down.]

But the income tax filing process will likely be closer to normal than either 2020 or 2021 were, which both had extended filing deadlines due to closures of IRS offices, the tax courts, and IRS and tax firm staff being new to remote working.

In other words… be ready to have your taxes filed (or an automatic extension filed) by Friday, April 15, 2022. The good news is that the federal and state income tax returns filing process should be closer to normal, as well. Depending on when a taxpayer files, they can often receive their tax refund payments (check or direct deposit) within only 2-3 weeks.

Traditionally (meaning pre-Covid), the IRS starts accepting tax returns during the last week of January. If major new tax legislation is passed at the end of the year, however, this could push the start of tax season back by a week or two. So, early tax filers who are a due a refund can often see them as early as mid or late February. However, taxpayers with the Earned Income Tax Credit or Child Tax Credit generally have their refunds delayed by about one month while the IRS confirms eligibility for these credits.

Although the last two tax filing seasons were significantly impacted by the Covid-19 pandemic, and the IRS extended both deadlines, the IRS is not expected to extend the tax filing deadline for 2022.

The below chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on the information we have now, and using projections based on previous years- and depending on when a person files their return. If your IRS income tax refund is delayed after you’ve filed, ask your tax professional, or simply use the “Where’s My Refund?” tool on the IRS website.

Most Americans who are expecting an income tax refund receive it by direct deposit in as little as 2 weeks, although it can take longer during the peak of the filing season, which starts in late March. So it’s a good idea to e-file your tax return as soon as you have all of your tax documents (like your W2, 1099s, mortgage and student loan interest, and other items).

Several factors can determine when a taxpayer may receive their tax return, including:

  • How early they file
  • If the taxpayer is claiming certain credits (especially EITC and CTC)
  • Whether the return is e-filed or sent by mail
  • Whether the taxpayer has existing debts to the federal government
  • The Covid stimulus payments sent out earlier in the year will not affect your income tax refund. (However, some taxpayers who did not receive one, may be determined to have been owed one, in which case they may be able to have it added to their 2022 refund as a credit. Ask your tax professional.)

Note: The IRS will delay processing by 2-3 weeks if an income tax return has the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), since these credits are often misused. The additional time allows the IRS to verify that taxpayers qualify for the credits.

So, here’s the chart you were looking for. If the IRS changes tax season this year, we will update this chart. And remember: This is an estimate of when to expect your refund. It is not exact, as all taxpayers have different returns and situations.

IRS Accepts E-Filed Return By: Direct Deposit Sent (Or Paper Check Mailed 1 week later):
IRS will start accepting income tax returns on between Jan. 24-Jan. 31, 2022.
Jan. 24, 2022* Jan. 31 (Feb. 11)**
Jan. 31, 2022* Feb. 11 (Feb. 18)**
Feb. 7 Feb. 18 (Feb. 25)**
Feb. 14 Feb. 25 (Mar. 4)**
Feb. 21 Mar. 4 (Mar. 11)**
Feb. 28 Mar. 11 (Mar 18)
Mar. 7 Mar. 18 (Mar. 25)
Mar. 14 Mar. 25 (Apr. 2)
Mar. 21 Apr. 1 (Apr. 9)
Mar. 28 Apr. 8 (Apr. 15)***

* = IRS may delay start of tax season by a week or so.

** = Returns with EITC or CTC may have refunds delayed until March to verify credits.

*** = Filing during peak season can result in slightly longer waits.

IRS Accepts Return By: Direct Deposit Sent (Or Paper Check Mailed one week later)
Apr. 4, 2022 Apr. 15 (Apr. 22)***
Apr. 11 Apr. 22 (Apr. 29)***
Apr. 18 Apr. 29 (May 6)
Apr. 25 May 6 (May 13)
May 2 May 13 (May 20)
May 9 May 20 (May 27)
May 16 May 27 (June 4)
May 23 June 4 (June 11)

IMPORTANT: If you file electronically (using an online tax program or preparer), the IRS will notify you of the actual date they “accepted” your return. This is often 1-3 days from the time you actually hit the “file” or “submit” button, and it is this date that you need to use for the above chart.

Taxpayers who mail a paper version of their income tax return can expect at least a 3-4 week delay at the front-end of the process, as the return has to be manually entered into the IRS system before it can be processed.

Be Safe – Hire a Professional

Taxpayers who use a professional, such as a CPA or EA, can ask that professional for the estimated date of their tax refund, and they can be more confident that their taxes have been properly (and legally) filed.

In general, the IRS says that returns with refunds are processed and payments issued within 21 days. For paper filers, this can take much longer, however. The IRS and tax professionals strongly encourage electronic filing.

What If You Can’t File Your Income Taxes By April 15?

Taxpayers who don’t have all of the paperwork needed in order to file their taxes can easily file an extension form, “Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” – This will give the taxpayer until October 15 to file their tax return. No reason or excuse is needed to receive this extension, and as the title states, it is automatically granted.

However, if a person will owe taxes, it is still their obligation to pay those taxes by April 15, even if they have requested an extension to file. A professional can assist with this. Those who are due a refund generally only need to file the extension request by April 15. Any tax professional and most do-it-yourself tax programs can perform this task.

Taxable PG&E Fire Settlement In California

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Is The PG&E Fire Settlement Taxable?

Want the easy answer to your question about is your PG&E Fire Settlement taxable?

Well.. let look into this or speak to one of our tax accountants about your settlement from the California PG&E Fire. If you are receiving money from the PG&E fire settlement the award may be taxable to you.

In general, all income is considered taxable unless Congress says it is not (IRC 61). So, when we look at your PG&E settlement offer, we start with the presumption that all of it is taxable and then we walk through the Internal Revenue Code to try and find ways to make it not taxable.

How can our tax accountants help with your settlement from the California PG&E Fire?

Our job will be to review your information and determine what part of your settlement payout can be nontaxable under the tax laws so that you are able to plan accordingly for income taxes.

First, we need to know what your award is for. The PG&E Fire Trust has been providing Determination
Notices that detail the breakdown of your settlement award (e.g., Emotional Distress-Nuisance, Emotional
Distress-Zone of Danger, Personal Injury, Real Property, Loss of Income, Interest, etc.). This should be
provided to you by your attorney. If you didn’t use an attorney, the Trust should provide this notice to you
directly. Some attorneys are recommending that your payout will not be taxable if they don’t provide this
information to you but that is incorrect. It is important that we obtain the details of your settlement proceeds
in order to determine what is taxable. If your attorney has subsequently requested a redetermination of
your settlement, we will need this notice to determine any changes in your proceeds.
Next, we need to determine whether each part is includable or excludable from income. You will note that
the PG&E Fire Settlement taxation proceeds follow the same tax guidelines as your insurance proceeds
payouts. The following are common settlement proceeds:
• Physical Injury – payments for physical injury or sickness are nontaxable and excludable from
income. This must be a physical injury meaning there was bodily harm.
• Emotional Distress – payments for emotional distress are taxable and includable in income unless
the emotional distress is a result of the physical injury. The physical injury must have happened on
the day of the fire and not after-the-fact or due to having emotional distress.
• Personal Property Settlements – payments for your residential real property could be fully taxable
if you are unable to exclude the gain as a personal residence exclusion ($250,000 single/$500,000
married filing jointly). If you have already received insurance proceeds for your property, we will
need to factor this in the equation to determine if you are still within the gain exclusion amount.
• Additional Living Expenses (ALE) – payments for additional ALE are nontaxable and excludable
from income as a result of the fire being located in a federal declared disaster area.
• Personal Contents – payments for your personal contents are nontaxable and excludable from
income for the same reason as ALE payments.
• Business Property Settlements – payments for your business property settlements could be fully
taxable. Some of these payments may be taxable as capital gain income depending on the type of
asset. You may be able to defer the gain by meeting the requirements of an involuntary conversion
under Internal Revenue Code Section 1033. There are specific rules and timelines for the 1033
exchange that we may have already addressed with your insurance proceeds. We will need to know
if you are planning on utilizing the 1033 election so that we can plan accordingly.
• Business Loss of Income – payments for business loss of income are taxable and reported as
business income.
• Rental Loss of Income – payments for rental loss of income are taxable and reported as
ordinary/rental income.
• Interest – interest is taxable as ordinary income.
With respect to attorney fees, most of the PG&E fire lawsuits are contingent fee lawsuits which means that
the attorney fees cannot be excluded from the gross award. So, if you receive $100,000 and give 30% to
your attorney, you are still taxed on the full $100,000. Further, the Tax Cuts and Jobs Act eliminated the
tax deduction for attorney fees through 2025, so there is no deduction available for the attorney fees on
your Federal Income Tax Return (attorney fees are still deductible on the California Return). Some
exceptions to this include being able to deduct attorney fees against loss of income received or if part of
your award receives capital gain treatment, then a portion of the fees can be added to the basis of the
property creating a deduction.

The Taxable PG&E trust settlement payments out to individuals

The PG&E trust has already started making settlement payments out to individuals. The first installment is
30% of your total settlement amount with the rest to be paid out at a later date. If this is the only payment
you receive in 2021, you are only responsible for paying taxes on the taxable portion of that payment.
We realize that this is a very complex tax situation, and you will probably have additional questions for us.
If you need us to run any tax projections, we recommend waiting until you receive your Determination or
Redetermination Notice before contacting us so that we have some numbers to work with. On basic
settlement scenarios, we have been recommending setting aside at least 30% of the gross payout for
taxes. This should be enough to cover the taxes, but we would have to run projections to make sure. Please
don’t hesitate to contact us if you need any additional help. We are here to assist you through this process
to the end.

Top 10 Tax Write offs for 2020

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Having your own business can mean many exciting things, from acting as your own boss, having control over your products and services, and making your income from your hard work. Along with that, the perk of investing in your business and what to use as a tax write-off for what you spend. This can make the following a bit more complicated, but much more worth it after seeing the numbers come back. So, keep track of your spending and save those receipts.

How Do I get a 2020 Tax Write-Off?

First off, you need to know what a write-off means to start organizing yourself for this task. Simply put, a write-off consists of any legitimate expenses that can get deducted from your business’s taxable income on your upcoming tax return. Using the term “write-off” means the reduction of something financially. During tax season, people write-off or reduce their taxable income by writing-off these expenses. Your taxable income consists of the amount of your income that the government will tax.

There’s a ton of things you can do to write-off expenses. Since there’s no clear line saying what you can and cannot write off, just remember that it must somehow directly relate to your business.

2020 Tax Write-Off Examples

To give you a more general idea of what businesses will write off, take some of these into consideration. Each of them directly relates to the business to function and provide services. The IRS defines tax write-offs to be “Ordinary and Necessary” to the business.

Advertisement and Promotions 

When investing in advertising for your company, it’s completely deductible. This means getting someone to create logos and designs for you, printing business cards or brochures, social media ads, and campaigns. These are all ways to help your business and are crucial to call attention to your company.

Business meals Tax Write Offs for 2020

Business meals are a little tricky since you can only deduct 50% of these costs. When you buy food for those late nights at the office or provided at company parties and events, this comes into effect. The food must qualify to fall under this category. It can’t list as anything lavish or extravagant. Keep the purpose written on the back of the receipt to remember why the purchase was made easily.

Business Insurance 

You can deduct the renter’s insurance you have for your home office or portion of your home to make your business run. It can even get used for rented buildings for your business as well.

Bank Fees and Interest 

If your credit card or bank charges monthly or annual fees for service, transfers, or overdrafts, then they all qualify. Even merchant and transaction fees applied to third party processors will qualify as deductible. Even the interest for your business card can get deducted if it’s only used for business purposes.

Business Travel Expenses 

Anything involving travel with your business can get used as a write-off. This means flights, places to stay, car usage, and more. There’s a lot of information on business expenses on the IRS website.

Depreciation 

This can come into play if you’re writing off big items like cars or equipment over the item’s lifetime instead of having the deduction all in one year. Here’s a formula created for this to make it simpler to calculate.

Depreciation = Asset Total Cost / Asset Lifetime

Education 

If you’re looking to add value to your expertise in your business, education can get deducted. To see if your classes will qualify, the IRS will determine if they improve skills relevant to your business. This can even count for workshops, seminars, webinars, subscriptions, and books.

Home office Tax Write Off 2020

A lot of businesses are working from home right now, and this can also get deducted. If you have a home office set up and a specific area for your work, then you need to look at the square footage. This area must only get used for work, though. You don’t have to devote an entire room, but it should be clear that only work happens here. Keep some photos to back up your workspace if you plan on doing this.

Salaries And Benefits

Almost every business out there will have a staff. No matter how big or small, that money probably comes from the business pocket. Take in mind salaries, benefits, bonuses, anything you pay out your employees is deductible. Even freelancers and contract works fall under this category.

Have Ever Write-Off For Tax Time 

Overall, we could continue the long list of expenses, but these are some of the most common and important write-offs you will come across. We help you with your business accounting services. If you have any questions or need some advice, contact us so we can help you. With 20 years of experience, we can help break down your write-offs for your business and make every tax year smooth and simple.

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.

The New California Proposition 15, the Tax on Commercial and Industrial Properties

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Proposition 15: California Business property taxes

 

WHAT WOULD PROPOSITION 15 DO FOR CALIFORNIA?

Hike property taxes on big businesses, raising billions for schools and local governments. 

Now, owners pay property taxes based on the price they originally paid for that real estate — typically a lot less than what it’s worth today. If this measure passes, property taxes for many large businesses would be elevated to the property’s current, probably higher, market value. That would net $6.5 to $11.5 billion — 60% for cities, counties and special districts, and 40% for schools and community colleges.

Not (directly) affected: homeowners, and businesses with under $3 million in California property. Farm land would be exempt. An analysis by the nonpartisan Legislative Analyst’s Office wasn’t able to determine whether the buildings and other improvements on that land would be too.

WHY AM I VOTING ON THIS?

Back in 1978, California voters famously passed Proposition 13 — a huge permanent tax cut for landowners. It amended the state constitution to reset property taxes based on the purchase price of a home or business, and capped how much the tax could increase each year after that.

 

Deadline to register for an Economic Impact Payment (EIP) in California

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The Internal Revenue Service Economic Impact Payment (EIP) in California

 

The Internal Revenue Service announced some days ago that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline. ( in Aug )

Helpful tool for Economic Impact Payment (EIP)

The IRS urges people who don’t typically file a tax return – and haven’t received an Economic Impact Payment – to register as quickly as possible using the Non-Filers:  on the IRS site https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here. The tool will not be available after November 21.

“We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,” said IRS Commissioner Chuck Rettig. “The IRS is deeply involved in processing and programming that overlaps filing seasons. Any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons. The Non-Filers portal has been available since the spring and has been used successfully by many millions of Americans.”

For taxpayers who requested an extension of time to file their 2019 tax return

Special note: This additional time into November is solely for those who have not received their EIP and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline date remains October 15.

To support the ongoing EIP effort, many partner groups have been working with the IRS, helping translate and making available in 35 languages IRS information and resources on Economic Impact Payments.

To help spread the word, the IRS sent nearly 9 million letters in September to people who may be eligible for the $1,200 Economic Impact Payments but don’t normally file a tax return. This push encourages people to use the Non-Filers tool on IRS.gov.

“Time is running out for those who don’t normally file a tax return to get their payments,” Rettig added. “Registration is quick and easy, and we urge everyone to share this information to reach as many people before the deadline.”

Who won’t receive Economic Impact Payment

While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don’t have a filing obligation need to use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.

The Non-Filers tool is secure and is based on Free File Fillable Forms, part of the Free File Alliance’s offering of free products on IRS.gov.

The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.

Anyone using the Non-Filers tool can speed the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

Covid-19 UPDATE: Get A $2,000 Stimulus Check Every Month

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As millions of Americans receive their $1,200 stimulus check today, a new proposal would give you $2,000 a month during the Coronavirus pandemic.

Here’s what you need to know.

Proposal: New Legislation

Two House Democrats want to enhance the $2.2 trillion stimulus package known as the CARES Act. Representatives Tim Ryan (D-OH) and Ro Khanna (D-CA) have introduced new congressional legislation — the Emergency Money for the People Act — to provide $2,000 per month to Americans who have been impacted by the COVID-19 pandemic. Under their proposed legislation, the congressmen would continue monthly cash payments to eligible Americans until employment returns to pre-COVID-19 levels. “A one-time, twelve hundred dollar check isn’t going to cut it,” Rep. Khanna said. “Americans need sustained cash infusions for the duration of this crisis in order to come out on the other side alive, healthy, and ready to get back to work.”

How It Would Work

The Emergency Money for the People Act would work like this:

  • Eligible Americans would receive $2,000 in cash per month guaranteed for at least six months.
  • These monthly cash payments would continue until the employment to population ratio for people ages 16 and older is greater than 60%.
  • The monthly cash payments would not count as income.
  • The monthly cash payments would not adversely impact anyone’s ability to qualify for an income-based federal or state assistance program.

Who’s Eligible

As with the $1,200 stimulus check (Economic Impact Payment), not every American would be eligible. Here’s who would get a monthly cash payment under this proposed legislation:

  • Every American adult age 16 and older making less than $130,000 annually would receive $2,000 a month;
  • Married couples earning less than $260,000 would receive at least $4,000 per month;
  • Qualifying families with children will receive an additional $500 per child, with funds capped at a maximum of three children.

For example, if you earn $100,000 of adjusted gross income per year and are a single tax filer, you would receive $2,000 a month. If you are married with no children and earn a combined $180,000 a year, you would receive $4,000 a month. If you are married with two children and earn a combined $200,000 a year, you would receive $5,000 a month. If you are married with five children and earn a combined $200,000 a year, you would receive a maximum of $5,500 a month because the $500 per dependent payment is only available for three children.

What if you don’t earn income or are unemployed?

If you had no earnings, were unemployed or are currently unemployed, you would be eligible.

What if you were not eligible for a stimulus check based on your 2018 or 2019 tax return, but you will be eligible in 2020?

You can be eligible and would need to submit at least two consecutive months of paychecks to verify your income.

Will most college students and adults with disabilities be excluded from these monthly payments?

No. Unlike the CARES Act, the Emergency Money for the People Act would make eligible college students and adults with disabilities who are still claimed as a dependent. The individual would receive the monthly payment and their parent or guardian would receive the dependent credit.