California New Jobs Credit – You Could be Over Paying Thousands in California Taxes…
You may still be able to take advantage of California’s New Jobs Credit. This credit provides up to $3,000 for each net increase in qualified full-time employees hired during the taxable year. California funded $400 millions for the New Jobs Credit in 2009 and the credit is available until the fund runs out. To date, there is still over $260 million in unclaimed credits.
To qualify for the credit an employer must meet the following:
- Each qualified full-time hourly employee is paid wages for not less than an average of 35 hours per week.
- Each qualified full-time employee that is a salaried employee was paid compensation during the year for full-time employment.
- On the last day for the preceding taxable year, you employed a total of 20 or fewer employees.
- There is a net increase in qualified full-time employees compared to the number of full-time employees employed in the preceding taxable year.
- Employer may not claim the credit for those employees whose wages are included in calculating any other credits including the following:
- Enterprise zone or targeted tax area
- Disadvantaged individual or qualified displaced employee in a local agency military base recovery area
If you qualify, you can claim this credit by asking your accountant to complete Form FTB 3527, New Jobs Credit and file with your California tax return. You may also claim it for prior years where it was missed by amending prior years’ returns.
This credit is well worth the few minutes of your time to fill out the questionnaire and see if you meet the requirements above. As one of our clients discovered last year, they received nearly a $10,000 tax credit on their California taxes. Since there are limited funds available for this program, please do not delay in considering this credit.
If you’d like more information, please call our office and ask for Bassim Michael at 1-877-71-TAXES. You can also email Bassim at bmichael@bmichaelcpa.com.
Happy Birthday to Only for Dentists, Michael & Company, CPA
Happy Birthday to us! January marks the 10th year we have been in business. It has been a great 10 years and we look forward to 10 more!
Exhibitor at Fresno Madera Dental Society’s CCDC
We are looking forward to exhibiting at Fresno Madera Dental Society’s CCDC (Central California Winter Dental Conference) this year. It is set to be held in the Veteran’s Memorial Building, Downtown Clovis – 453 Hughes Street, Clovis, CA 93612 – tomorrow, January 18, 2013 from 8:00 a.m. to 4 p.m.
There is a great line up of speakers for the day:
- Stanley Surabian, DDS, JD Target audience: dentists, assistants, hygienists, and front office. Presentation: “California Law”: Fulfills requirement for re-licensure.
- Teresa Pichay: “HIPAA/HITEC Act” Target audience: Front office, treatment coordinators dentists, assistants and hygienists.
- Diane Arns “OSHA and Infection Control” fulfills requirement for re-licensure. Target Audience: dentists, assistants, hygienists and front office.
Attendees: Make sure you stop by our booth at some point during the day. Just look for our new logo! Looking forward to seeing you there!
Key Tax Provisions of the “Fiscal Cliff”
The bill that congress passed and the president promised he will sign to avoid the dramatic rise in income tax rates AKA as the fiscal cliff will raise taxes on the nation’s highest earners while extending and making permanent most of the Bush era tax cuts. Here is a summary of key tax provisions:
- Tax rates for single individuals making $400,000 and married couples making $450,000 will be increased to 39.6% indexed for inflation.
- For those taxpayers in the 39.6% bracket, long-term capital gains and qualified dividend tax rates will rise from 15% to 20%.
- For all other taxpayers, the Bush tax cuts from 2001 and 2003 will be made permanent.
- Phaseouts for itemized deductions and personal exemptions will be reinstated for couples making over $300,000 and single taxpayers making $250,000.
- Fixes AMT patch for 2012 and adjusts the exemption amounts permanently.
- Code Section 179 asset expensing will be extended at $500,000 for 2013.
- Extends 50% bonus depreciation through 2013.
- Estate tax rates will rise to 40% but the exemption amount will remain at $5 million per spouse adjusted for inflation.
If you have questions about this topic, please feel free to contact us via email or phone, 559-436-8907.
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