mytax[at]adams.net wrote:

- quote -

Note that the top income tax rate in CA is 10.3%, courtesy
of the passing of "Proposition 63" in November 2004. It
kicks in at $1M.

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mytax[at]adams.net wrote:

- quote -

True, 3%; but it is 3% of federal AGI. Now I think CA
allows other deductions and credits don't they? So their
9.3% may not be as onerous as one might think.

But it's a dollar to a donut he'll pay CA the difference! lol

ChEAr$,
Harlan Lunsford, EA n LA
Tue, 18 Jan 2005

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Stewart wrote:

- quote -

You will file part-year resident returns with both IL and
CA. As you suggest, you will have a refund coming from IL
and a big liability to CA. Filing the IL return early and
hoping to get the refund before April 15 is a good idea.
However, depending on your income level, filing status, etc.
you may find that your IL refund will still leave you with a
significant additional amount to pay with your California
return. You are going from a rate of 3% of AGI to graduated
rates up to 9.3% of taxable income. Unless you have a lot
of itemized deductions (which IL doesn't allow), you may
find that you are paying a higher average percentage of your
AGI to California than you would have to Illinois.

If you did not file a 2003 California return, i.e., you had
no income from California sources before you became a
resident, you will not be subject to a penalty for
underpayment of estimated taxes for this first year. As
long as you file and pay your California tax liability by
April 15, you should not be subject to interest or
penalties.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

I think you've got the right plan. If you e-file, the IL
refund may come through more quickly. You might have an
underpayment penalty on CA, but since you're only looking at
the period from 1/18/05 to 4/15 it's not likely to be much,
and you might be able to wiggle out of it with an
explanation.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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"Stewart" <someone[at]microsoft.com> writes:

- quote -

Lesson for lurkers: Make sure you follow up on these
things. The error can be corrected as long as it's done
before December 31.

- quote -

That's your best bet. Make sure you adjust the W-2 wages
figure.

- quote -

Probably. File the return, pay the tax, and wait and see.

Phil Marti
Clarksburg, MD

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If you e-file your IL income tax this week before Thursday,
you can have your refund in your bank account (with direct
deposit) usually by the following Friday (9 days). You
will need to file a Form IL NR along with your IL 1040.
This breaks down what income was earned in which state.
Getting your refund so quickly will let you pay CA for the
tax that you owe them. There is a big difference in the
%age of tax, IL is 3% and CA can be 9.3% (last time I filed
a CA).

Missy Doyle IL

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Stewart wrote:

- quote -

It's not too late for your company to correct the error and
reallocate their accounting and payments to the correct
states. their mistake, so they should be willing to fix it.

- quote -

However; if they do not, then you're on the right track,
file IL early and receive a huge refund to have funds to
send CA. If you explain with a letter what happened, and
point out the error was not yours, they just may, and
probably will, let you off the hook.

Of course someone out in CA may know something different
about the machinations and inner sanctum of the CA FEB.
FTB? something like that.

ChEAr$,
Harlan Lunsford, EA n LA
Sun, 16 Jan 2005


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During 2004 I accepted a promotion with my company which
required me to move from IL to CA. I asked my HR department
to make sure that CA income tax was being deducted from that
point forward (9/15/04 on). I just found out that no such
change was made to my withholdings. What forms do I need to
fill out and what is the best way to proceed? My inclination
is to file with Illinois ASAP and hope the credit comes
through before April. Is California going charge me interest?

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