Looking ahead - what’s new in 2008?
Registered Domestic Partners (RDP)
It hardly seems new, since we’ve been anticipating it since Fall 2006 – but the filing requirement takes effect this 2008 filing season. Effective for taxable years beginning on or after January 1, 2007, RDPs under California law must file their California income tax returns using either the married/RDP filing jointly or married/RDP filing separately filing status. RDPs will have the same legal benefits, protections, and responsibilities as married couples unless otherwise specified.
Taxpayers who entered into in a same sex legal union in another state, other than a marriage, and that union has been determined to be substantially equivalent to a California registered domestic partnership, effective for taxable years beginning on or after January 1, 2007, are required to file a California income tax return using either the married/RDP filing jointly, or married/RDP filing separately filing status. Information on what constitutes "substantially equivalent" is pending Attorney General’s decision.
For more information on RDPs, see FTB Publication 737, Tax Information for Registered Domestic Partners.
Customer Service Number no longer required for Web Pay
Now your clients can pay online using only their Social Security Number (SSN) and last name, provided their last name matches the last name we have on our records. Find out more about Web Pay on our Website.
Teacher Retention Credit
For taxable years beginning on or after January 1, 2007, the Teacher Retention Credit has been repealed.
Round cents to dollars
Beginning with the 2007 tax forms, round cents to the nearest whole dollar. For example, round $50.50 up to $51 or round $25.49 down to $25. If you do not round, FTB will disregard the cents. This change helps process paper returns more quickly and accurately, and provides consistency with the electronically filed returns.
Business entity return types that can be e-filed
Businesses are able to e-file the following return types and tax periods beginning on or after January 1, 2008.
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Later in 2008, we will begin accepting e-filed Form 100W, California Corporation Franchise or Income Tax Return - Water’s-Edge Filers, and Combined Returns, for taxable years beginning on or after January 1, 2008.
Preparers should check with their software providers to see if they support all types of Business e-file.
Business taxpayers can get more information on our Website at www.ftb.ca.gov/professionals/efile/index.shtml.
All forms and schedules that can be e-filed are listed in our Business e-file Overview.
Beginning January 2007, the LLC Fee will be based on total California source income rather than on worldwide total income. For further information, see the LLC Income Worksheet Instructions in the California Forms and Instructions 568 Booklet.