Tuesday, October 25, 2011

I don't think I like California anymore...

I just did a mock run of our taxes to get an idea of how things look now that SCB has a real job. It doesn't look too shabby on the Federal end. We won't be getting gobs of money back, but a nice little chunk to the tune of $500 to $600.

But not for California... no no. We essentially will owe around $600 to the state. Why?

Because the tax rates are really high... and the standard deduction is really pitiful. From my understanding, you can only itemize your state taxes if you itemize your federal taxes... and since we can't itemize federally, we can only deduct the standard deduction from our state taxes and we fall into the second highest tax rate their is...

If anyone is the wiser about California Taxes, I'd love more information. I always end up using Turbo Tax for both because whenever I try to do it myself I always miss some huge savings somewhere that the machine finds.

but from what I gather, we will owe $600 to the state and that's just really lame. :(
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3 comments:

  1. AnonymousOctober 25, 2011 at 6:32 AM

    Go to a CPA. It doesn't cost much more than turbo tax for pretty straightforward taxes, and then you KNOW it's right.

    ReplyDelete
  2. MichelleOctober 25, 2011 at 7:05 AM

    That stinks! I always end up owing a little to the state (around $100).

    ReplyDelete
  3. LeslieOctober 25, 2011 at 7:38 AM

    I'm in New York, I feel your pain.

    ReplyDelete

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