TaxmanHog
01-18-2009, 11:51 AM
Controller to Delay Certain Payments for 30 Days
To Preserve Cash for Schools and Other Legally Protected Expenditures.
http://www.sco.ca.gov/eo/fiscalissues/payments01-2009a.shtml
My recommendation to those who are self employed......carry forward the credit balance to 4/15/2009 Estimated tax deposit & make up only the difference needed in your annualized projections.
This is a common process most accountants follow with Self Employed earners.
---BUT---
I suspect the process might help with some wage earners, carry forward your 2008 credit balance to 2009, then adjust you wage with holding increasing your exemptions on the STATE equivalent W-4, such that you weekly tax W/H are diminished by a para mutual amount.
One must keep a CLOSE EYE on this intentional under with holding, allow it to go on only long enough to recover the equivalent value of your refund that was pushed forward on the books into your 2009 liability.
----BUT----
This means deposit to the State Treasury will be diminished, Semi-Weekly, Weekly, Monthly depositing on current 2009 wage income.
Keeping this catch-22 cash flow condition ongoing!
----THEREFORE-----
The Governor & Legislature need to make crucial decisions NOW:
What is going to be permanently CUT?
What alternate Revenue streams can be ramped up?
To Preserve Cash for Schools and Other Legally Protected Expenditures.
http://www.sco.ca.gov/eo/fiscalissues/payments01-2009a.shtml
My recommendation to those who are self employed......carry forward the credit balance to 4/15/2009 Estimated tax deposit & make up only the difference needed in your annualized projections.
This is a common process most accountants follow with Self Employed earners.
---BUT---
I suspect the process might help with some wage earners, carry forward your 2008 credit balance to 2009, then adjust you wage with holding increasing your exemptions on the STATE equivalent W-4, such that you weekly tax W/H are diminished by a para mutual amount.
One must keep a CLOSE EYE on this intentional under with holding, allow it to go on only long enough to recover the equivalent value of your refund that was pushed forward on the books into your 2009 liability.
----BUT----
This means deposit to the State Treasury will be diminished, Semi-Weekly, Weekly, Monthly depositing on current 2009 wage income.
Keeping this catch-22 cash flow condition ongoing!
----THEREFORE-----
The Governor & Legislature need to make crucial decisions NOW:
What is going to be permanently CUT?
What alternate Revenue streams can be ramped up?