Residents in California have the potential to receive up to $12,000 in rebates if they meet the eligibility criteria for a combination of state and federal incentives, as stated by the state’s tax board.
Residents of California have multiple opportunities to earn extra money after filing their taxes, even though federal stimulus check payments have ceased. The California Franchise Tax Board provides several options to help individuals in this regard.
Low-income residents in California who qualify for the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit (YCTC), and the Federal Earned Income Tax Credit (EITC) can receive a significant financial boost. Those who meet the requirements may be eligible for up to $12,076 in tax credits. Specifically, for the 2023 tax year, individuals may receive a payment of up to $3,529 through the CalEITC program.
To qualify for the program, residents must have an annual income of $30,950 or less. If you meet this requirement and wish to apply, you will need to use the 2023 FTB 3514 form.
Even if you earn more than that amount, you still have the opportunity to benefit. Individuals who make less than $63,398 are eligible to apply for the EITC, which has the potential to further increase their payments.
Meanwhile, the YCTC provides an alternative way to increase the amount of your rebate. This tax credit allows for a maximum of $1,117 per tax return.
To qualify for the tax credit in California, families must have an earned income of $30,931 or less and have a qualifying child under the age of six. In addition, they must meet the eligibility requirements for the CalEITC.
The Foster Youth Tax Credit (FYTC) provides an extra $1,117 per person or $2,234 per couple filing jointly. To be eligible for the FYTC, you must have been a foster youth who received care in California’s foster care system at the age of 13 or older.
To qualify for the EITC, individuals must file both their state and federal tax returns with the IRS. It is important to note that in order to receive this rebate, taxpayers must meet the deadline and pay all the necessary taxes by April 15th.
In total, these rebates can add up to an additional $12,076 in your bank account.
Zack Hellman, owner of Tax Prep Tech, emphasized the significance of filing both state and federal tax returns by the April 15 deadline in order for Californians to access the tax credits and one-time tax rebate. He stated, “To unlock these credits, and thereby the one-time tax rebate, Californians must diligently file both their state and federal tax returns. The importance of settling any owed taxes by the April 15 deadline cannot be overstated to avoid penalties.”
“These rebates, which are designed to meet the specific needs of California, offer significant relief to its residents,” he emphasized. He further highlighted the importance of such state-specific initiatives, especially in a time when federal stimulus checks have come to an end.
The IRS will begin accepting tax returns on January 29th, while the California Franchise Tax Board started accepting returns on January 2nd.
The deadline for all returns is April 15, but California provides a state extension until October 15.
Residents who file their taxes electronically can expect their refunds to be processed within 21 days. However, for those who choose to file paper returns, it may take up to three months for their refunds to be issued.
According to financial expert Michael Ryan, families can significantly boost their household income by taking advantage of these credits. He explained that they have the potential to earn up to an additional $12,076, which can make a huge difference for many households. Ryan acknowledges that while it may not solve all financial challenges, every bit of extra income can help alleviate some of the money struggles that families are currently facing.
Other Rebates Available
Americans have access to several other tax rebates.
Pennsylvania offers a property tax and rent rebate program that provides residents with $1,000.
This year, more individuals are eligible for the benefit because the income limit has been raised. Both renters and homeowners will receive the monetary assistance if their annual income is $45,000 or less.
Vermont’s Property Tax Credit is a valuable program that assists homeowners in covering their property taxes. To be eligible for this benefit, residents must meet certain criteria and have their property classified as a homestead. The credit is determined based on the amount of property taxes paid in the 2023/2024 tax year. This initiative provides much-needed relief for homeowners in Vermont who may experience financial strain due to their property tax obligations.
The maximum credit for the education property tax portion is $5,600, while the municipal property tax portion offers a maximum credit of $2,400. The amount earned is determined by various factors.
Couples in Alabama are also receiving an additional $300 if they filed a state income tax return for 2021 before October 17, 2022. The Education Trust Fund, which had a surplus of $2.8 billion, allocated $393 million for these tax refunds. State officials have stated that the purpose of these payments is to assist residents and offset the grocery taxes they have paid throughout the year.