Friday, April 6, 2012

CA non-resident nightmare!

Q.  I've been informed I must file a California non-resident return as I received a K-1 form with enough California source income to require filing. I'm struggling with a CA non-resident return, and I'm about to give up. Short of hiring someone which I can't really afford, do you have any suggestions?

A.  With 32 years of filing California returns, when it comes to the non-resident returns, I still sweat bullets! Why, because California usually does not conform to federal law, and although you start out with your federal adjusted income, the manual adjustments which need to be made can be mind boggling! It helps to remember that California taxes you on your world wide income, and then the prorations begin.

My best suggestion is to figure out approximately how much tax you would owe if you were a full year resident. Then, get an extension to file Form 3519 and pay the amount you would owe if a full year resident.

After April 15th, call the people at the Franchise Tax Board - see links to California on left side - and you should be able to get through. If filling out a non-resident return is the bad news, at least the people at the Franchise Tax Board are truly helpful and should be able to help you out.

Wednesday, April 4, 2012

IRS & You Tube

If you think you need more last minute help, the IRS does provide short videos via You Tube. Here is the link for the IRS site. If you're a do-it-yourself-er, you may find this to be helpful.

Tuesday, April 3, 2012

Busy, very busy

Sorry I've been behind a few days. It's really crunch time, and taxes just seem to keep getting bigger and more complex. The one I just finished today was too large to even fit into one folder; had to put the federal return in one folder, and then put the 4 state returns into another folder. We sent him over 2 pounds of paper, and that doesn't even include returning his original documents. These will go out in another envelope tomorrow.

Yesterday I had the privilege of visiting with a "full timer" who was passing through our area en route to Las Vegas. This gave me the opportunity to personally give him his individual tax return (I had sent him his partnership return weeks earlier) and to discuss some tax strategy for this year.

What fun it is to actually meet clients and enjoy each other's company, if only for a few hours! He and his wife have a very big rig, and I was able to direct him to a great parking area right off I-15 and we enjoyed dinner together at California's largest casino, about 35 miles from my office.

Meeting new friends and enjoying our travels is what makes RVing special. In this case, we exchanged experiences of our Alaska trip, as they are going back this summer. So, if you are ever passing our way, be sure to let me know. We would enjoy meeting you as well!