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

• Author: Reynolds, Bob

After the bustle of the holidays, CPAs will be launched headlong into tax season. With the rapid changes taking place in the economy and regulatory world, there's much to know when it comes to filing for your clients. But, never fear! CalCPA's annual Tax Season Toolkit is here to help.

California Tax Tips

Tax legislation, regulations and initiatives were enacted in 2012. while temporary tax provisions expired in 2011. Here are several important highlights for your 2013 busy season.

Effective in 2012

Proposition 30 Temporary Personal Income Tax Rate Increases Approved by Voters

Effective Jan. 1. 2012. the income tax rate increased an additional 1 percent to 3 percent for individuals with taxable income exceeding S250,000. The highest tax rate 01 13.3 percent will be applied to individuals exceeding SI million in taxable income.

Single, Sep. Filer Joint Filer Head of Household 2012 Taxable Income Taxable Income Taxable Income Marginal Tax Rate $48,943-$250,000 $97,885-500,000 $66,619-340,000 9.3 $250,001-300,000 $500,001-600,000 $340,001-408,000 10.3 3300,001-500,000 $600,001-1M $408,001-680,000 11.3 More than $500,00 More than SIM More than 12.3 $680,000 More than 1M* More than $1M* More than $1M* 13.3 *Includes Mental Health Tax Rate of 1 percent for taxable income in excess of $1M. Net Operating Losses Allowed for Tax Year 2012

The California net operating loss (NOL) suspension was not extended to 2012. Also, no other legislation was passed to limit As a result. NOLs are allowed to be taken for a. tax year beginning On or after Jan. 1, 2012.

Multistate Tax Compact (MTC) Repealed; Elections Affecting Computation of Tax Required on Originally Filed Return

Effective June 27. 2012. California repealed all provisions related to the MTC, including those containing income/franchise multistate apportionment and allocation. The repeal ends California's participation as a voting member of die executive committee of the MTC.

In addition to repealing the MTC provisions, the legislation made "declaratory of existing law" that, unless otherwise provided. the Doctrine of Election requires an election affecting the computation of income or franchise tax to be made on an original timely filed return for the taxable period for which the election is to apply. Although the doctrine applies to any election that affects the computation of' tax. it does not address how the doctrine affects provisions allowing for retroactive elections.

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