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California Newsome Signs Budget Deal Offering Taxpayer Funded Health Insurance To 3.3M Immigrants

We greatly appreciate feedback from the tax professional community on these measures.

Determined to make history, and scheduled to start in 2024, the State of California and its taxpayers are offering taxpayer-funded health insurance to its entire 3.3M illegal alien population.The cost for health insurance for California taxpayers is expected to be about $2.4 billion annually.

California is also expanding their food stamp program for illegal immigrants, paid for by taxpayers. Here is the post from the Governor’s Office.

Californians’ Pockets and Investing in State’s Future

Published: Jun 30, 2022 By Office of Governor Gavin Newsome

SACRAMENTO – Governor Gavin Newsom today signed a $308 billion state budget that provides direct tax refunds for 23 million Californians to help address rising costs, tackles the state’s most pressing needs, builds our reserves, and invests in California’s future.

Here are the top 10 things you need to know about the budget:

1. “Cha-ching! You just received a deposit.”

Global inflation. Rising costs. It’s hard out there and we know it. So, we’re giving you $9.5 billion back. MILLIONS of Californians– 23 million to be exact – will benefit from up to $1,050, as soon as October! See if you qualify on the new Middle-Class Tax Refund calculator here.

2. Don’t go into crippling debt over a hospital visit

Written by TaxConnections Admin | Posted in California Tax Update • Healthcare For Immigrants • TaxConnections

We wanted to provide you with an update regarding tax legislation recently passed that may affect you.

If you are a shareholder, partner, or member of an S corporation, partnership, or LLC, you may be able to reduce your federal income tax liability.

The Tax Cuts and Jobs Act reduced the amount of the state tax deduction individuals may claim on their federal tax return to a maximum of $10,000. This limitation caused significant tax increases to taxpayers living in high property and high state income tax states (such as California).

To assist business owners who are recovering from the global pandemic, California recently passed Assembly Bill 150 (AB 150). This bill allows qualified S corporations, partnerships, or LLCs to pay tax on their individual, trust, or estate owners’ share of the entity’s qualified net income at the entity level. Furthermore, the bill also allows these owners to claim a credit for the tax paid on their California personal income tax return. The effect of this is the following:

Written by David Ellis | Posted in California Tax Update • Tax Planning