The state’s tax board is offering substantial rebates to those who qualify for specific tax credits. Contrary to the expired federal stimulus checks, California residents may still benefit from a generous aid program amounting to a staggering $12,076.
The primary avenues for these rebates include the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit (YCTC), and the Federal Earned Income Tax Credit (EITC).
Residents with a low income, earning $30,950 or less per year, can receive up to $3,529 through CalEITC for the 2023 tax year. To qualify, individuals need to fill out the FTB 3514 Form and ensure timely tax payment.
For those making more than the mentioned threshold, applying for the EITC is still an option, especially if their income falls below $63,398 annually.
Additionally, the YCTC offers an opportunity to increase the rebate amount by up to $1,117 per tax return, provided the individual earns less than $30,931 per year and has a qualifying child under six years old.
Tax Experts Urgently Highlight April 15 Deadline
Zack Hellman, owner of Tax Prep Tech, emphasized the importance of filing both state and federal tax returns by the April 15 deadline to unlock these credits and secure the rebates. He noted that in the absence of federal stimulus checks, state-specific initiatives like these become crucial for residents.
While the California Franchise Tax Board has been accepting tax returns since January 2, the IRS will commence accepting returns on January 29. All tax returns, both state and federal, are due by April 15, with a state extension available until October 15.
Refunds for electronically filed returns should be processed within 21 days, and for paper returns, refunds are expected within three months.
Financial advisor Michael Ryan made clear that these refunds have a substantial effect on family income, perhaps adding $12,076 to it. He recognized the difficulties that many families today face and underlined that although there isn’t a perfect answer, every little amount helps.
Beyond California, other states also offer various tax rebates. In Pennsylvania, a property tax and rent rebate program provides $1,000 to eligible individuals making $45,000 or less annually. Vermont’s Property Tax Credit and Alabama’s $300 tax refund for qualifying couples further contribute to financial assistance initiatives across the country.