JS Castillo Bookkeeping and Tax LLC

Any small business' looking for a remote bookkeeper? I have openings

IRS not taxing certain state payments, including the California Middle Class Tax Refund (02-10-23)
Today the IRS announced that regarding special state tax payments, “in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.” This includes the California Middle Class Tax Refund.
The IRS will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax returns: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island. Specified payments made by Alaska are also not going to be taxed.
In addition, some, but not all, taxpayers in Georgia, Massachusetts, South Carolina, and Virginia also will not include state payments in federal taxable income if they meet certain requirements. For these individuals, state payments will not be included if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit.

Tax Season has officially started, for my CA peeps if you received the CA inflation payment it is taxed on the Federal side but not the State side. Add as other income

Due to economic changes, J S JS Castillo Bookkeeping and Tax LLC is officially taking on new clients for either Tax Preparation or Small Business remote bookkeeping services

Great new J S Castillo Bookkeeping and Tax has officially moved back to Santa Cruz CA

Anyone still needing help with their 2018 or 2019 tax return I am here

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Court rules Uber/Lyft must treat their drivers as employees (08-10-20)
The San Francisco Superior Court has ruled that Uber and Lyft must immediately begin treating their drivers as employees in California.
The court found that Uber and Lyft’s treatment of their drivers was in direct contravention of AB 5’s ABC test and refused to grant a stay of the order while Uber and Lyft appeal the decision. The court also refused to grant a stay pending the outcome of Proposition 22 on the November 2020 ballot, in which Uber and Lyft are asking voters to decide whether their drivers should be treated as independent contractors, entitled to specified pay and benefit protections to be provided by the companies.
Uber and Lyft will undoubtedly appeal the decision, but unless a court of appeal quickly intervenes Uber and Lyft must begin treating their California drivers as employees immediately.
The superior court’s order can be found at:
www.caltax.com/files/2020/uberlyft081020.pdf
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www.caltax.com

www.caltax.com

Non-Filers: Enter Payment Info Here | Internal Revenue Service Steps to receive the Economic Impact Payment if you haven't filed a tax return for 2018 or 2019, and aren't receiving Social Security, SS Disability Income or Railroad Retirement benefits. This payment is also referred to as "stimulus checks" or "coronavirus relief."

New federal extensions
The Treasury Secretary announced today that the April 15 filing deadline has been extended to July 15 for all taxpayers and businesses. This means taxpayers will no longer be required to file extensions for federal purposes. They also have until July 15 to pay, so long as they fall below the thresholds of $10 million due for C corporations, and $1 million due for all other taxpayers.
The information released today did not address the March 15 filing deadline, second quarter estimate payments, payroll tax filing deadlines, or IRA contribution deadlines. We will update you on this information as it becomes available.
New California extensions
The FTB is postponing until July 15 the filing and payment deadlines for all individuals, trusts, and business entities for:
• 2019 tax returns;
• 2019 tax return payments;
• 2020 1st and 2nd quarter estimate payments;
• 2020 LLC taxes and fees; and
• 2020 Non-wage withholding payments.
The FTB extended their initial extension period of June 15, 2020, to be more consistent with the IRS extension relief. Like the IRS extension, the FTB extension applies to both filing and payment deadlines, but does not limit the payment extension to those below $1 million ($10 million for corporations), and applies to estimated tax and withholding payments.
Like the IRS, the FTB is also extending this relief to all taxpayers, not just those "affected by the COVID-19 pandemic."
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Sign up for our March 26, COVID-19 and Filing Extensions: What Tax Pros Need to Know, and get details of the Families First Coronavirus Response Act and extended tax season deadlines. Click here to register online.

This was just announced today there has been an approved extension

IRS Moving Tax Day to July 15 from April 15, Mnuchin Says U.S. Treasury Sec. Steven Mnuchin says people and businesses will have more time to file and make payments without interest or penalties, Bloomberg News reports.

IRS defers 2020 tax payments by 90 days due to coronavirus Delay takes pressure off of people scrambling to pay their returns by April 15.

Governor provides 60-day filing extension to coronavirus victims (03-13-20)
In his March 12, 2020, executive order, the Governor extended the deadline for state tax filing by 60 days for individuals and businesses unable to file on time based on compliance with public health requirements related to COVID-19. It appears the Governor's order may be much broader and may provide relief for payments as well as other deadlines (e.g. refund and protest claims). We are following up with the FTB and the CDTFA regarding the scope of the order. We are also anticipating that the IRS will be providing similar relief shortly.
We will keep you updated as more information becomes available.
To view the Governor's executive order, go to:
www.gov.ca.gov/wp-content/uploads/2020/03/3.12.20-EO-N-25-20-COVID-19.pdf
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www.gov.ca.gov

Don't forget to pull your Covered CA tax forms, they are now available online

Tax season is almost here, Jan 27 you can start filling your taxes

Happy New year Eve from J S Castillo Bookkeeping and Tax hope your 2020 will be full of blessings

Make sure clients sign up for health care to avoid new California penalty (10-17-19)
Effective January 1, 2020, California residents must obtain minimum essential health care coverage to avoid the new California individual health care mandate penalty enacted by SB 78 (Ch. 19-38). Generally speaking, an individual who fails to secure coverage will be subject to an annual penalty of $695 or more when they file their 2020 California tax return.
Covered California will be accepting applications for health care coverage from October 15, 2019, through January 1, 2020. Also, let your clients know that California subsidies will be available for individuals and families with incomes up to 600% of the federal poverty line (federal subsidies are available for up to 400% of the poverty line).
People may sign up by going to:
www.coveredca.com

Covered California™ | The Official Site of California's Health Insurance Marketplace Covered California is California's official health insurance marketplace, where individuals, families and small businesses can get brand-name health insurance and receive financial help to pay for coverage.

Legislature passes individual health care mandate penalty and subsidies (06-27-19)
The California Legislature has passed SB 78, which would require most California residents and their dependents to obtain minimum health care coverage by January 1, 2020, or pay a penalty similar to the penalty previously imposed by the federal government under the Affordable Care Act. The Governor is expected to sign the bill.
The bill also provides for California tax-exempt subsidies to assist residents in obtaining health insurance if their income is below 600% of the federal poverty level ($74,940 for an individual; $154,500 for a household of four). The FTB will impose a penalty of up to $695 annually against individuals who fail to comply with the mandate. Employers must annually provide health care coverage information to the FTB by March 31 and will be subject to penalties for failure to comply
More information as we move forward

April 15 deadline is around the corner.

To those people who were effected by no longer being able to deduct unremibursed employee expense(W-2 income) or Investment expenses. Good News the State of California) still allows that deduction

A California health care employer defends its meal and rest period practices in court. The case, filed by a nurse, included a claim that the company failed to pay overtime and minimum wages, based on the use of a rounding policy. Clock in and out times were rounded up or down, to the nearest 10-minute increment. On appeal, the court ruled the policy complied with CA law, stating the policy was “fair and neutral on its face” and didn’t fail to properly compensate employees for all time worked, over a period of time. (CA Ct. App., 4th Dist., Dkt. No. D071895

Due to a presidential disaster declaration, some victims of California’s recent wildfires may qualify for federal Disaster Unemployment Assistance (DUA). DUA provides temporary unemployment assistance to eligible individuals whose work or self-employment has been interrupted due to a major disaster and who also meet certain other conditions. This applies to losses in CA from the Camp, Hill, and Woolsey fires. Eligible persons may receive up to $450 per week for up to 27 weeks. The deadline to file is 12/14/18. Here’s more: https://bit.ly/2OLyEek

California employers get good news. For years, CA employers have been paying federal unemployment tax (FUTA) that is 2.1% higher than employers in most other states, to repay federal unemployment insurance (UI) loans the state incurred. Generally, employers pay a net FUTA rate of 0.6%, after taking advantage of a credit reduction. As of 11/10/18, CA employers have fully repaid the loans. That means, when they file their Forms 940 (“Employer’s Annual Federal Unemployment”), they can take advantage of the credit reduction, and once again pay a net FUTA rate of 0.6%.

California makes “room” for nursing mothers in the workplace. Effective 1/1/19, CA employers must provide lactating mothers a reasonable break time when they can express breast milk. If possible, the break can run concurrently with other rest time. When that’s not possible, the rest time is considered unpaid. Employers must also provide a private place for lactation, near the work area, other than a toilet stall. Civil penalties may apply for employers that fail to comply. Exceptions exist. For more from the CA Dept. of Industrial Relations: https://bit.ly/2yqhLAG

Are you receiving disability indemnity payments from a California employer? New legislation in CA authorizes employers, with the written consent of the employee, to deposit such payments in a prepaid card account, subject to conditions. Among other things, the cards must allow reasonable access to in-network automatic teller machines. This is a pilot program which will sunset on 1/1/23

IRS SCAM class 101 ~ a client forwarded this email to me...
Heads up , this is clearly a scam.
1) The real IRS NEVER sends emails or makes phone calls. The only method of communication is via USPS letter or correspondence
2) This is asking for money for a STATE tax. The IRS represents FEDERAL TAXATION, not State.
Okay, SCAM 101 class is over.

Property tax relief may be available for some Californians. The CA State Controller has announced applications are now available for the CA Property Tax Postponement program (previously suspended). The program allows eligible homeowners who are seniors or blind, or have a disability, to postpone property taxes on their primary residences. Funding is limited and applications will be processed in the order received, beginning 10/1/18. Participants must reapply and show eligibility each year. For details and an application, click here: https://bit.ly/2CUwLvn

Some California taxpayers are receiving erroneous late notices. Taxpayers who reside in federally declared disaster areas have been granted extra time to accomplish state tax-related tasks, such as filing tax returns and paying taxes due. The CA Franchise Tax Board (FTB) has reported that, due to a systemic issue, some taxpayers who qualify for this relief have received notices assessing late-filing penalties. While the FTB works to update its system and address this issue, taxpayers can contact the FTB on its homepage and click live chat: https://bit.ly/2MG3HMz

By Presidential Disaster Declaration, some victims of California’s recent disasters may qualify for federal Disaster Unemployment Assistance (DUA). DUA provides temporary unemployment assistance to eligible individuals whose work or self-employment has been interrupted due a major national disaster and who also meet certain other conditions. This applies to losses in CA that began during or after the week of 7/29/18. Eligible persons may receive up to $450 per week for up to 27 weeks. The deadline to file is 9/10/18. Here’s more: https://bit.ly/2MGDLPY

Generally, employers can require workers to stay on the premises during meal breaks, without pay, if the workers are relieved of duties during the breaks. In California, a fast food restaurant offered workers discounted meals, but only if they ate them on the premises during a break, as a way to prevent theft. One employee argued that she should be paid at a premium rate for breaks, even if she opted for discounted meals. A U.S. District Court found the employer’s policy didn’t violate state law, and the 9th Circuit Court of Appeals agreed. (Rodriguez, 7/18/18)