- quote -

From one Californian to another:
Your trying to make sense out of this?

By the way, let's not forget that unless Congress gets off
its duff, the federal deduction for $250 of educator's
expense doesn't exist in 2004.

As an aside, if your not a CA teacher and you stand way back
and take a look at this, you see the folly of trying to use
the Tax Code to benefit a specific occupation. We ought to
bite the bullet and give the teacher's the raise in pay many
of them deserve or at least increase the school budgets to
provide the necessary books and supplies or increase the
budget to allow nontaxable reimbursement of ordinary and
necessary business expense like any other profession.

--
Alan
http://taxtopics.net

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- quote -


I don't mean to shoot the messenger (in fact, thanks for the info) but this
just does not make sense. The new credit was valid for 2001, then not for 2002,
then yes for 2003, then no for 2004 and 2005.

Does suspending this (very minor) credit REALLY balance the state budget? Why
don't they just get rid of it rather than using it as a pawn this way? (part of
my frustration comes from having to report the credential #, years of teaching
experience, etc. and then not being able to carry forward that information on
the following year's proforma).

Jan Zobel EA
San Francisco and Oakland, CA

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The 2004-2005 California State Budget, SB 1100, Sec. 7
suspended the Teacher's Retention Tax Credit for 2004 &
2005.

If you used the credit to compute 2004 withholding for a
client I suggest you contact them with the bad news and
revise their California withholding for the balance of 2004.

Larry McClellan

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