TAXing issue (San Diego, Santa Ana, Riverside: apartment, rental, insurance)

[Invicta67]

Would appreciate some help unravelling the tax requirements for California if anyone can help.
I think the following rates apply (I have ignored “deductibles” and “credits” for the moment) as a starting point:

EMPLOYEE

Federal Tax – tiered from 10% to 35%
State Tax – tiered from 1.25% to 9.55% (2010 rates)
Federal Insurance Contributions (FICA) – 6.2%
Medicare – 1.45%

EMPLOYER

UI – on hold for 2011 (approx. 3.5% for 2010?)
ETT – 0.1%
SDI – 1.2%
Federal Insurance Contributions (FICA) – 6.2%
Medicare – 1.45%

So….(1) have I missed anything? (2) are these rates correct?

Any help greatly appreciated.

[Invicta67]

Formatting malfunction - please refer to later post and ignore this one.

Thanks

[pacific2]

Originally Posted by Invicta67

Formatting malfunction - please refer to later post and ignore this one.

Thanks

Your other post is in the LA Forum. Do you still have time to edit your earlier OC post?

[pacific2]

This might help give you a general idea about CA income taxes even though the info is from 2009:

How California State income tax rates are structured
The tax table below will show in detail the California state income tax rates by income tax bracket(s). There are 7 income tax brackets for California. If your income range is between $0 and $7,168, your tax rate on every dollar of income earned is 1%.
If your income range is between $7,169 and $16,994, your tax rate on every dollar of income earned is 2%.
If your income range is between $16,995 and $26,821, your tax rate on every dollar of income earned is 4%.
If your income range is between $26,822 and $37,233, your tax rate on every dollar of income earned is 6%.
If your income range is between $37,234 and $47,055, your tax rate on every dollar of income earned is 8%.
If your income range is between $47,056 and $1,000,000, your tax rate on every dollar of income earned is 9.3%.
If your income range is $1,000,001 and over, your tax rate on every dollar of income earned is 10.3%.
Income tax brackets data last updated March 3rd, 2009.
http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_ca.htm (broken link)

[pacific2]

Head says Irvine - we are establishing a business and whilst I'll be covering 5 counties (OC, San Diego, San Bernardino, Riverside & Imperial) I am likely to be based in either Santa Ana or Irvine).
Investigations so far indicate Irvine would save us between $350 & $500 per month on rent & travel costs which would be useful but......

It sounds like you could use an accountant since you will be entitled to business deductions, among others. For example, a lot of your business related travel expenses may be deductible. You'll have a lot of justifiable deductions with a business start-up, but definitely get an accountant.

[Invicta67]

Thanks "Pacific 2" - such prompt responses at an un-earthly hour!!

I have a couple of CPA's lined up to meet but want to be as knowledgeable as possible before committing too many $'s - every one will be needed!!

[pacific2]

Originally Posted by Invicta67

Thanks "Pacific 2" - such prompt responses at an un-earthly hour!!

I have a couple of CPA's lined up to meet but want to be as knowledgeable as possible before committing too many $'s - every one will be needed!!

You’re welcome, and I had better get ready to hit the road! I have a long drive ahead of me. I would also suggest getting a short-term corporate apartment rental of 3-6 months while you consult with a CPA about business, especially travel, deductions. You might find that it’s possible to live where you want, in Dana Point, without breaking the bank.

[PROFJOAN]

If you buy be sure to apply for the FIRST TIME HOME BUYERS PROPERTY DISCOUNT from O,.County. It is a one time only thing elegible because of PROP 13.