California Tax Updates Related to Coronavirus

The Franchise Tax Board has updated its Coronavirus FAQ page with the following information:

  • The Recovery Rebate Payments from the IRS are not taxable in California
  • The additional $600/week of unemployment benefits is not taxable in California
  • The modifications to the net operating loss rules for the IRS do not apply to California
  • California will conform to the IRS penalty waiver on qualified distributions from retirement plans under the CARES Act

As more situations are discovered, there are likely to be additional updates and clarifications.

Full Q&A from FTB

Disclaimer: Hone Maxwell LLP articles and blogs are not intended as legal advice. Additional facts, facts specific to your situation or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.

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