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

• Position: TOOLKIT

As California's rainy season gives way to reveal an azure spring sky, CPAs know that the greater storm is yet to come.

As the holiday season turns into tax season, bringing the promise of constant, adrenaline-fueled deadlines, CPAs can be excused for turning a sentimental eye to winter.

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.

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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 questions to (916) 845-6377.

California Package X

A copy of the FTB's Package X will make tax season a little easier. Package X contains 2006 California tax forms and instructions and is offered in bound and loose-leaf print versions.

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. Or call (916) 845-7070.

E-file Resources

The FTB has compiled a wealth of e-file resources, including FAQs; 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 or e-file@ftb.ca.gov.

Business e-file

The FTB's Business e-file Program is evolving, with more features promised for 2007. You now can file Form 100 along with certain forms and schedules, and the FTB will expand the program to include Forms 100S, 565, 568, etc.

If you are enrolled in the California e-file Program, you do not need to enroll again for Business e-file. However, if your office will have different contact information for Business e-file, you must update your information at www.ftb.ca.gov/online/8633.

For more information, including applicable forms and schedules, visit http://ftb.ca.gov/professionals/busefile. For California Business e-file questions, contact the FTB's e-Programs Customer Service at (916) 845-0353 or e-file@ftb.ca.gov.

California Real Estate Withholding Information for Sellers and Buyers

The 3.33 percent withholding requirement for real estate sales has been modified for sales occurring after Jan. 1, 2007. Sellers may elect to have the withholding based on the actual gain. There will be a worksheet on the FTB's website for computing the revised withholding.

For more information on California's withholding requirements, including newly revised FAQs, visit www.ftb.ca.gov/individuals/wsc/California_Real_Estate.html. For questions relating to real estate withholding requirements, call (916) 845-7315 or e-mail WSCS.GEN@ftb.ca.gov and include "Real Estate Team" in the subject line.

Tax Rates, Tax Threshold and Standard Deductions

The tax rates have been indexed by 4.8 percent for the 2006 tax year.

The tax threshold has risen to $11,271 of adjusted gross income for single and married filing separate taxpayers, and $22,542 for married filing joint, surviving spouse and head of household taxpayers.

The standard deduction will increase for single or married filing separate taxpayers from $3,254 to $3,410. For married, qualifying widow(er), or head of household taxpayers, the standard deduction increases from $6,508 to $6,820. The personal exemption credit increases for single, married filing separate, or head of household taxpayers from $87 to $91 and for married or surviving spouses from $174 to $182. The dependent exemption credit rises from $272 to $285 for each dependent.

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