Why do I have to make estimated payments?
Federal and California State income taxes are pre-paid.
For most people who are paid through payroll, this means that the estimated taxes are withheld from your paycheck throughout the year, and then you file a return to claim a refund or make up the balance due. But if you have multiple sources of income, or receive your income without having any withheld for tax, you may become subject to estimated taxes and underpayment penalties.
Saving for College : 529 plans
As a parent, you may be interested to know how 529 plans help families save for college. A 529 plan is an educational savings option that is operated by a state or educational institution, with tax advantages that make it easier to save for college and other post-secondary training for a designated beneficiary, such as a child or grandchild. These plans are also referred to as qualified tuition programs, tuition plans, or 529 programs.
No Mileage Log, No Deduction
In a court case involving an individual, the judge allowed $780 as a business deduction for auto use. The individual claimed $6,033 on his tax return, but he was missing that critical mileage log to prove his business use. They could have preserved the additional $5,253 in deductions by following a few simple rules.