Frequently Asked Questions CA

Personal Tax FAQ

When Does a Household Employer Become Subject to State Payroll Taxes?: A household employer must report when he/she employs one or more individuals to perform work and pays cash wages of $750 or more in a calendar quarter. You must register with the Employment Development Department (EDD) by submitting a Registration Form for Employers of Household Workers (DE1 HW) within 15 days after you pay $750 in total cash wages. Register online using e-Services for Business.

What Are Wages?: Wages are all compensation for an employee’s personal services, whether paid by check or cash, or the reasonable cash value of noncash payments such as meals and lodging. The method of payment, whether by private agreement, consent, or mandate, does not change the taxability of wages paid to employees. Payments are considered wages even if the employee is a casual worker, a day or contract laborer, part-time or temporary worker, or paid by the day, hour, or any other method or measurement. Supplemental payments, including bonuses, overtime pay; sales awards, commissions, and vacation pay are also considered wages.

What is Unemployment Insurance?: Unemployment insurance (UI) provides temporary payments to individuals who are unemployed through no fault of their own. It is an employer-paid tax. Unemployment insurance benefits are taxable income for federal purposes but are not taxable by the State of California. In order to determine taxable income each January, the EDD sends a Form 1099-G to each individual for the total unemployment insurance benefits paid during the prior year. If you don't receive your Form 1099-G by mid-February, you may call EDD at (800) 795-0193 to get another copy. For more information, see IRS Publication 525, Taxable and Nontaxable Income.

Should a tax return be filed for a departed taxpayer?: A final return must be filed for a person who died during the calendar year if a return normally would be required. The administrator or executor if one is appointed or beneficiary must file a return. Please print or type 'deceased ' and the date of death next to the taxpayer's name at the top of the return.
If you are a surviving spouse and no administrator or executor has been appointed, you may file a joint return if you did not remarry during the same year in which your spouse died. Write the words surviving spouse next to your name when you sign the return.

Should a tax return be filed for a deceased taxpayer?: A final return must be filed for a person who died during the calendar year if a return normally would be required. The administrator or executor if one is appointed or beneficiary must file a return. Please print or type 'deceased ' and the date of death next to the taxpayer's name at the top of the return. If you are a surviving spouse and no administrator or executor has been appointed, you may file a joint return if you did not remarry during the same year in which your spouse died. Write the words surviving spouse next to your name when you sign the return.

What is a Form 1099-G?: Form 1099-G is a statement used to notify taxpayers on the amount of California Personal Income Tax Refund, Credit, or Offset they received for a specific tax year.

When will a Taxpayer receive a Form 1099-G?: Taxpayers normally received a Form 1099-G because it appears they claimed state income tax payments as an itemized deduction on Schedule A of Federal Income Tax Return for the tax year listed in Box 3 and received a refund, credit, or offset of $10.00 or more from the California Personal Income Tax Return. If Taxpayers did not itemize deductions on Federal Income Tax Return for the tax year indicated on Box 3, please disregard Form 1099-G.

How to get a copy of Form 1099-G?: For 1099-G inquiries, go to My FTB Account and use the easy to follow directions.
You may also contact via:
Within the United States – 800.852.5711
Outside the United States – 916.845.6600 (not toll-free)
For each phone number above, select Personal Income Tax, Frequently Asked Questions and enter code 506 when prompted.
For the hearing impaired with TDD – 800.822.6268
Or you can write at:

Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0040

How to get a copy of Form 1099-G?: For 1099-G inquiries, go to My FTB Account and use the easy to follow directions.
You may also contact via:
Within the United States – 800.852.5711
Outside the United States – 916.845.6600 (not toll-free)
For each phone number above, select Personal Income Tax, Frequently Asked Questions and enter code 506 when prompted.
For the hearing impaired with TDD – 800.822.6268
Or you can write at:
Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0040

What is a Form 1099-INT?: Form 1099-INT is a statement to notify taxpayers of the amount of California Personal Income Tax Interest they received in the past calendar year.

How to file electronically and get a fast refund?: E-filing your state income tax return is the fastest way to receive your tax refund. When you e-file and select direct deposit, you can enjoy the convenience of having your refund in your bank account in one week or less. If you don't choose direct deposit, your refund is generally mailed in one week.
Both residents and nonresidents can e-file their current year returns using a tax preparer or their own software. E-file returns come directly into our system, virtually eliminating the possibility of your return getting lost, delayed, or accessed by anyone else. And, with e-file, you get confirmation we accepted your return for processing.

What if I don’t pay the return on time?: If you owe, but cannot pay your taxes by the due date, you must still file your return on time and pay as much as you can. Although there are penalties for late payment of tax, the penalty for late filing of the return is usually higher.
After your return is processed, the Franchise Tax Board will send you a bill including penalties and interest. Please do not send a copy of your tax return with your payments. Be sure to include your social security number and tax year on your check or money order.

I only lived in California for part of the year. Do I have to file a California return?: California taxes all income you received while a California resident, and the income you received from California sources while you were a nonresident. The requirement to file depends on the amount of income you received from any source while you were a California resident and California source when you were not a resident of California.

I am currently, or was, in the military. Do I have to file a California return?

If you were a member of the military during the taxable year and your domicile is California, we consider you a resident of California. While stationed in California on permanent military orders, you are subject to tax on all income regardless of its source. While stationed outside of California on Permanent Change of Station (PCS) Orders, you are not subject to tax on your military wages.
If you are or were a member of the military and your domicile is not California, we may require you to file a California return if you have California source income such as:

Wages for services performed in California other than military pay.
Income received from real or tangible personal or business property located in California
Income received by your non-military spouse while your spouse resided in California, or income that your spouse received from California sources.

What is a Power of Attorney?: A Power of Attorney (POA) is a legal document that proves one person has permission to represent another. Commonly, a taxpayer signs a POA (FTB 3520) to let us know we can discuss their account or return with their authorized representative, and that their representative may request certain actions on their behalf. We are prohibited from disclosing confidential information to anyone other than the taxpayer or their authorized representative.

When a POA is required?

A POA is required for your representative to:

Receive confidential tax information
Represent you in FTB matters
Request information we receive from IRS
Waive the California statute of limitations (SOL)
Execute settlement and closing agreements
Sign your tax return
Receive, but not endorse or cash checks we send to you
Delegate authority or substitute another representative
Receive information from non-tax programs, such as Vehicle Registration Collections

What are the qualifications for Nonrefundable renter’s credit?

You must meet all of the following to qualify:

You were a California resident for the entire year.
You paid rent for at least half the year for property in California that was your principal residence.
The property you rented was not exempt from California property tax.
You did not live with another person for more than half the year (such as a parent) who claimed you as a dependent.
You were not a minor living with and under the care of a parent, foster parent, or legal guardian.
You or your spouse/RDP was not granted a homeowner's property tax exemption during the tax year.
You may still qualify for the credit if your spouse/RDP claimed a homeowner's exemption and you maintained a separate residence for the entire year.

Why some out-of-state retailers collect tax and others do not?: An out-of-state company that is "engaged in business" in the State of California must register with the BOE to collect use tax on their retail sales of tangible personal property to California customers. Generally, an out-of-state company is "engaged in business" in California when they have a sales office, warehouse, or sales representative located in California, receive rental receipts from equipment located in California, or have some other physical presence in this state. If a company is not "engaged in business" in California, they will generally not charge you California tax. However, some out-of-state companies with no physical presence voluntarily register with the BOE and collect tax as a courtesy to their California customers.