Need help with California state taxes (1 Viewer)

[Jose Arellano]

Hi, I live in Texas but received some money coming from California when I was on Wheel of Fortune. They took a big chunk out for California State Taxes though, and need to find, preferably, a free tax-assistance number for California taxes. Or, I need someone who knows this stuff to please assist me. I won $25,650 cash, and over $1700 was taken out. After figuring in federal taxes that I must pay, I want to keep or get back as much of this money that I can.

What do I need to do, or what is a general rule of thumb to tell me if I'll get some of this money back?

Who can please help me with California non-resident taxes? I'd really appreciate it. Thanks!

Lenny

 

[Jack Briggs]

When it comes to taxes, Jose, I suddenly lose two digits from my IQ score. My sister's CPA boyfriend handles that stuff for me. But I'm responding out of curiosity, because I've always wondered about the cash won on game shows: How much, total, has been deducted from your winnings?

On Jeopardy! right now, this really sharp acting student has won more than $50K for a three-day total. How much can he keep of that, I wonder?

 

[Jose Arellano]

Jack, on Wheel of Fortune, they only deduct CA taxes, and leave the federal taxes up to you. Out of the $25,650 I won, I think it was about 8% for California taxes, and my check was something like $23,700, so I guess that is just under 8%. For my federal taxes, I'll only have to pay taxes on it like any regular income, so it'd be at my tax rate, and even then, after all deductions, etc. it won't be too much, prob about $4K at the most. I had estimated $10K, and I was very surprised and estatic to find out it'd only be this much when I did my taxes.
I DO think, however, that the minimum income amount for a person filing jointly in CA is about $28K, so I should be able to get it all back, but I'm not sure of that. I bought a tax program pertaining to CA, but I'm not too sure it's accurate. How much would your brother-in-law charge to take a look at this part of my tax return? I just want to pay my federal taxes and get my money from CA so I can go buy a few things I need. Thanks for whatever help anyone might be able to give me!

 

[Allan Jayne]

>>> the minimum income amount for a person filing jointly in CA is about $28K, so I should be able to get it all back...
In most states the minimum income amount (if any) refers to total income, not California (or Maine or Ohio, etc.) income.
So to estimate your California tax, first pretend you had lived in California all year and compute the tax. Then figure out what percentage of your total income that year was from California. Then take that percentage of the fictitious California income tax on your entire income and the result is roughly your real California income tax.
The amount withheld by California is deductible when computing your federal taxes. THe next year, if you get a refund, you ahve to treat it as income in said next year, or if you have to pay more to California, you get another deduction.
Other useful hints:
http://members.aol.com/ajaynejr