State of California Portal Highlights week of 5/05/08

Every May is Safe Jobs for Youth Month inCalifornia. Find out what teens, parents, teachers, employers, and others can do to promote teen job health and safety throughout the month of May. Click here to download the new Safe Jobs for Youth Month Resource Kit for 2008.

The IRS began issuing Economic Stimulus Payments (rebates) on April 28 and will continue to issue payments through July 2008. Eligible taxpayers must file a 2007 federal tax return to receive the rebate. Here is information about how California handles the rebate:

1. Will California tax the federal rebate?

   No. The federal rebate is not taxable by California based on FTB's legal ruling of 2001 combined with the amended Internal Revenue Code (IRC). For more information, see FTB legal ruling 2001-3 and the IRS economic stimulus payment information.

2. If I'm required to file a federal tax return in order to get the rebate, am I also required to file a California tax return even if I normally do not file a California tax return?

   No. Only file a 2007 California tax return if either of the following apply:

   • Your income is above the filing threshold for California.
   • You are otherwise required to file a 2007 state return.