Tax season: everything you need to navigate through the busy season.

• Position: TOOLKIT

While some believe Groundhog Day determines the distance between winter and spring, many CPAs already can sense a growing shadow across their desk cast by a stack of W-2s.

As the holiday season turns into tax season--bringing a slew of new tax legislation and the promise of constant, adrenalinefueled deadlines--CPAs can be excused for wanting to extend their winter tax hibernation.

But never fear! CalCPA's annual tax season toolkit is here to help.

As you meet with clients, research what's new in the tax codes and update your software to provide the best service you can, spring ahead and confidently meet the only season that's never late or early, tax season.

California Tax Tips

Practitioner Hotline Hours

The tax practitioner hotline is available Monday-Friday, 8 a.m.-5 p.m. at (916) 845-7057. The hotline is closed on weekends and state holidays. You also can fax your questions to (916) 845-6377.

California Package X

A copy of the FTB's Package X in hand will make tax season a little easier. The package contains 2004 California tax forms and instructions and is offered in two types of print versions--bound and loose-leaf.

The FTB is taking orders and will begin shipping Package X in January. For information, or to download an order form, go to www.ftb.ca.gov/professionals/packageX. You also can call (916) 845-7070 or write to: Franchise Tax Board, PO Box 2708; Rancho Cordova CA 95741-2708.

Mandatory E-file

The FTB has compiled a wealth of e-file resources, including FAQs, a copy of the Assembly bill that made e-file mandatory, an e-file opt-out form (Form 8454), program information, a list of approved e-file software providers, an e-file tutorial, sample client letters, and forms and publications at www.ftb.ca.gov/professionals/efile/m_e_file.html.

You can contact the FTB's e-file help desk at (916) 845-0353 or by fax at (916) 845-0287. To e-mail the FTB with your e-filing questions, visit www.ftb.ca.gov/emailapps/ero.asp.

E-signature Option

The FTB is adding electronic signature options to its e-file procedures, mirroring IRS procedures by allowing taxpayers and tax professionals to sign using a personal identification number. Beginning in January, the FTB will accept electronic signatures using Self-Select PIN and Practitioner PIN methods. In addition, you still will have the option to use the California E-file Return Authorization (Form 8453).

California Real Estate Withholding Information for Sellers and Buyers

For sales closing during 2004, California law requires withholding of 3 1/3 percent of the total sales price on sales of California real property. The seller may be exempt from withholding if they certify and meet an exemption. For more information on California's withholding requirements, visit www.ftb.ca.gov/individuals/wsc/California_Real_Estate.html.

For complex questions relating to real estate withholding requirements, call (916) 845-7315.

Tax Rates, Tax Threshold and Standard Deductions

The tax rates have been indexed by 3.1 percent for the 2004 tax year. The tax threshold has risen to $10,492 of adjusted gross income for single and married filing separate taxpayers and $20,931 for married, surviving spouse, and head of household taxpayers.

The standard deduction will increase for single or married filing separate taxpayers from $3,070 to $3,165. For married, qualifying widow(er), or head of household taxpayers, the standard deduction increases from $6,140 to $6,330. The personal exemption credit increases for single, married filing separately, or head of household taxpayers from $82 to $85 and for married or surviving spouses from $164 to $170. The dependent exemption credit rises from $257 to $265 for each dependent.

Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent Credit, Qualified Senior Head of...