What about 1% California Mental Health Service Tax?
The extra 1% Mental Health Services Tax in California for many years appeared to be a tax that would only affect the very wealthy. However, with professionals having high salaries, investment income, or what looks like a significant amount of cash coming in all at once, they can surpass the $1 million mark surprisingly fast today. There is also a California surtax on income over $1,000,000 at the rate of 1% on the excess. Most importantly, the $1 million index is not adjusted for inflation, which could eventually draw more taxpayers into the tax's reach due to increases in wages and asset values. Look for an experienced tax professional (like an attorney for IRS issues ) for some extra benefits. How Can You Inadvertently End Up with Over A Million Dollars? The tax doesn't need to be triggered by a seven-figure income. There can be many different income events that could drastically affect your income taxes in one year. Stock Compensation Vesting of stock options, exe...