tax filing

California taxes on Paycheck Protection Program (PPP) funds? Maybe not. 

The California saga for taxing Paycheck Protection Program funds continues.

The ever-changing landscape for how California will or won’t tax a business’s Paycheck Protection Program (PPP) funds continues to resemble a game of ping pong.

First, California lawmakers were clear they would tax the proceeds (by not allowing deductions paid with the funds). Then, as the political blow back about taking that position arose quickly, lawmakers proposed several pieces of legislation to partially change course.

FTB Announces Coronavirus Tax Relief

FTB Announces Coronavirus Tax Relief

We do have some important news to bring you on the filing of your state of California income tax returns and estimated tax payments – and no, unfortunately the Treasury and IRS have not provided any guidance at all as of the time of this email for what they plan. Be careful not to believe all you read on social media, etc. As soon as anything federally is officially implemented, we will let you know right away.

On Friday, The Franchise Tax Board (FTB) announced special tax relief for California taxpayers affected by the COVID-19 pandemic. “Affected taxpayers” are granted an extension to file 2019 California tax returns and make certain payments until June 15, 2020, in line with Governor Newsom’s March 12 Executive Order. This relief includes moving the various tax filing and payment deadlines that occur on March 15, 2020, through June 15, 2020, to June 15, 2020.