California FTB Issues Income Tax Bulletin on Changes to Court-Ordered Debt Collections, Earnings Withholding Orders

The California Franchise Tax Board (FTB) Dec. 22 issued a public service bulletin to advise taxpayers of a change to FTB court-ordered debt collections, vehicle registration earnings withholding orders, garnishments, and financial institution levy exemption amounts for orders issued on or after Jan. 1, 2022. The bulletin includes that the new restrictions on: 1) earnings withholding orders for employers don’t impact the way employers calculate the amount of individual income tax to withhold from wages for the FTB; and 2) orders to withhold from financial institutions don’t impact the exemption amounts for personal income tax or corporate income taxes. [Cal. ...