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Santa Ana California IRS 1099-MISC 2025 Form: What You Should Know
Answer: California does not currently meet the requirements to claim the exclusions. The State of California is required to provide an explanation and rationale to the IRS. When the State provides a justification stating that the exemption will cause special hardship to any of its residents, that justification must explain the amount of this hardship. If the State demonstrates that the exemption will cause no hardship, then the State may not claim the exemption. If a State demonstrates that the exemption will cause the State substantial hardship, the State may claim the exemption. If a State provides a justification of hardship that cannot be disclosed to the IRS, then the State has the burden to show exactly why the State will receive any special benefits because of an exemption. Exemption 1: Retired Pay Eligible: The following information should be provided with the election: Age at Election Date: If, at the time of electing for benefits, the taxpayer's spouse received any retired pay or benefits, including the completed period beginning on the beginning date of entitlement and ending one year after the payment date; Retired Pay or Benefit Periods Eligible: If the paid or accrued value of the retired pay or benefits the taxpayer is eligible for is 300 or more, the following information should also be provided with the election: The amount of the payment or accrued benefit the taxpayer is eligible for and is not otherwise excluded Income Limitations: To determine when the taxpayer earned or accrued any of the retired pay or benefits referred to in item 5 or in any schedule of retired pay or annuities the taxpayer elects to exclude from income under this section or sections 6.03, 6105 [if the taxpayer was married and filing a joint return] or 6111 (if the taxpayer was unmarried and had no children), add to the above amounts the tax due at the end of the 10th year after the filing of the return, less any exclusion under section 6012(c) [if the taxpayer is married and filing a joint return] or 6223 (if the taxpayer is unmarried and had no children).
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