UPDATE Edit! - This has been challenged by Federal Law so there may be changes coming but no updates as of right now.
There are major changes coming to Californians in 2020. The individual mandate tax penalty will be reinstated which means that California Residents who choose not to buy qualified health insurance will face a penalty of either $695 per adult, $347.50 per child, or 2.5% of their annual income. To avoid a penalty, California residents need to have qualifying health insurance for themselves, spouse, and dependents in place on January 1, 2020.
Also note, if you enrolled in health insurance through the Marketplace you will be receiving a 1095-A that must be included on your 2019 tax return.
Mortgage Insurance deductions commonly known as PMI is being allowed for 2019 returns that itemize their deductions on Schedule A.
Credit for electric cars are still being allowed IF your car is listed as an eligible vehicle.
Credit for renewable energy is still allowed for 2019. However 2019 will be the last year at the 30% rate, the credit drops to 26% for 2020 and decreases annually until it ends in 2022 unless extended by the government.
If your income qualifies and you receive CA Earned Income Credit, you may be eligible for a CA child tax credit of up to $1000 for dependents under 6 years old.
Virtual currency transactions are taxable by law just like transactions in any other property. Taxpayers transacting in virtual currency may have to report those transactions on their tax returns.
The legislature is considering ballot initiatives for changing Estate Taxes and possibly Prop 13 amendments, stay tuned.
The Internal Revenue Service urges taxpayers who work multiple jobs or who may be adding summer employment to complete a Paycheck Checkup.
We will once again this year offer a week's stay at a Hawaiian Resort to one lucky taxpayer who has their taxes done by Freedom Tax Professionals. Drawing to be held after the tax deadline. You can earn additional entries by referring your friends and family!
Bobby had a great time in Hawaii and will be sharing some pictures soon so stay tuned!
Switch to Freedom Tax Professionals this tax season and we will save you 25% over what you paid last year! That's HUGE savings! Some conditions apply, subject to minimum charge $100.