This course provides five credit hours of California tax law coverage as required annually for Certified Registered Tax Preparers (CRTPs), and the materials are also useful to California CPAs. The course will direct your attention to provisions and requirements included in the Tax Preparation Act, as codified in the California Business and Professions Code (California Code) Sections 22250 through 22259.

This course covers the latest developments in federal and California tax law, emphasizing areas of non-conformity. There are important rule differences related to contributions to and withdrawals from retirement accounts, and changes made by the SECURE Act 2.0 related to required minimum distributions, just to name two areas. We will delve into worker classification issues - employee vs. independent contractor - and the implications this has for taxation.

We'll start with an overview of the different types of taxes in California and the various taxing authorities, then examine how to determine residency for tax purposes. Next, we'll review the different filing statuses available to taxpayers. We'll also cover California and federal income and how they work together when preparing taxes in California. You will have ample examples of how to source different types of income for California income tax purposes.

After successfully completing this course, you will be able to identify, recall, and recognize the correct treatment of rules and procedures for the following:

• recent federal tax law changes and areas of California conformity and partial conformity
• the broad scheme of taxation in California, including income tax, property tax, and sales and use tax, to name a few
• residency status and filing status
• the relationship between the federal tax return and the California tax return, specifically with respect to the manner in which federal adjusted gross income provides the starting point for completing the California tax return
• different types of income and California sourcing issues
• the various withholding requirements (payroll tax, tax on certain real estate) California law places on transfers of funds to taxpayers
• requirements for estimated tax payments, annual tax payments, and taxpayer and tax preparer penalties

Tax Year: 2022-2023

CRTPs, AFSP, California CPAs