With the tax season underway, some California residents could qualify for up to $12,076 in credit. The $12,076 tax credits from California include three separate credits – the California Earned Income Tax Credit (CalEITC), Young Child Tax Credit (YCTC), and the Federal Earned Income Tax Credit. These tax credits from California could provide taxpayers with cash back or help them lower taxes they might owe.
Tax credits from California: who will get them?
Last month, the California Franchise Tax Board (FTB) detailed three credits that can help taxpayers get up to $12,076 this tax season.
The first credit – the California Earned Income Tax Credit (CalEITC) – offers relief to low-income, working individuals or families. Taxpayers eligible for CalEITC can get a maximum of $3,529 for the 2023 tax year. To qualify for the credit, a taxpayer must be earning $30,950 or less annually.
Taxpayers need to use the 2023 FTB 3514 form to claim the CalEITC. Visit the California State Franchise Tax Board website to get more information on the CalEITC.
Californians could also qualify for the Young Child Tax Credit (YCTC). To qualify for the YCTC, a family must have an earned income of $30,931 or less, a child under six years old, and meet qualifications for the CalEITC. The maximum rebate a person can get is $1,117 per eligible tax return.
Californians can also qualify for a new credit this tax season, called the new Foster Youth Tax Credit (FYTC). The credit provides up to $1,117 per eligible individual or up to $2,234 if both spouses qualify for the credit.
To qualify for the credit, a person must be a current or former foster youth who received care at age 13 or older. Also, the person must have benefitted from the California foster care system.
How to claim
To claim the above three tax credits from California, including the CalEITC, YCTC, and FYTC, Californians need to file a state tax return, as well as file a federal return to get the federal EITC. Also, taxpayers must pay taxes by April 15 to avoid penalties.
It is recommended that taxpayers file their returns online to get the refunds quickly. Further, the FTB recommends taxpayers keep all tax documents available for the year 2023 to avoid any delays in processing.
“CalFile allows most Californians to e-file their state tax returns with FTB quickly, easily, and for free, with real-time confirmation that we received them,” the FTB said in a press release last month.
Those who need assistance with their taxes can get free help through the Volunteer Income Tax Assistance (VITA) program. Visit ftb.ca.gov and search for “free tax help” to get a list of VITA program locations. Separately, Californians can use the MyFTB service to view tax documents, check due balances and contact FTB staff securely.
