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Strategies for Minimizing Tax Liability as a California Resident

As a California resident, how can I minimize my tax liability? Could you discuss strategies for legally reducing my tax burden, such as making retirement contributions, charitable donations, and other tax planning techniques specific to California?

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3 Replies
DianeW777
Employee Tax Expert

Strategies for Minimizing Tax Liability as a California Resident

Yes. We can start with the following article first which can lead to lower state taxes and a California (CA) specific link that will give information about credits and deductions allowed on their return.

The CA guide has all the topics you asked about and more.

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Strategies for Minimizing Tax Liability as a California Resident

Thank you for the help. 

MayaD
Employee Tax Expert

Strategies for Minimizing Tax Liability as a California Resident

Contributions to a qualified charitable organization can be claimed as an itemized deduction on your tax return and can decrease your taxable income. CA does not conform to all federal itemized deductions. Check Common itemized deductions for CA allowable amount.

 

You may be able to claim a deduction on your income tax return for the amount you contributed to your IRA. We generally follow the IRS when it comes to deduction limits. IRA deduction

 

Also, tax credits help reduce the amount of tax you may owe.

 

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