Tax season is here, are you ready?

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February 06, 2023

Happy New Year!

The 2023 tax season is here and I wanted to share with you a few resources that may help put money back in your pocket. In this newsletter you will find information about:

  • The California Earned Income Tax Credit (CalEITC)
  • The Young Child Tax Credit (YCTC)
  • Disaster Related Tax Relief
  • Free tax preparation services.

Earned Income Tax Credit and CalEITC 

Earned Income Tax Credits help working people with incomes below $30,000 to receive either a cash refund or reduce the amount they might owe. As there are both California and federal EITC programs, many people who qualify for one will typically qualify for the other.

Who Qualifies for CalEITC?

To qualify for CalEITC, you must meet all of the following requirements during the tax year:

  1. You’re at least 18 years old or have a qualifying child
  2. Have earned income of at least $1.00 and not more than $30,000
  3. Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for you, your spouse, and any qualifying children
  4. Live in California for more than half the filing year
  5. Not be eligible to be claimed as a qualifying child of another taxpayer
  6. Not be eligible to be claimed as a dependent of another taxpayer unless you have a qualifying child 
Learn More

Young Child Tax Credit (YCTC)

The Young Child Tax Credit (YCTC) provides a credit up $1,083 per tax return for Californians who qualify for CalEITC and have a child under 6 years old during the year prior to filing.

Who Qualifies for YCTC? 

New: For tax year 2022 forward, you may qualify for YCTC with total earned income of zero dollars or less if you meet the following requirements:

  1. Your total wages, salaries, tips, and other employee compensation (whether subject to California withholding or not), if any, do not exceed $32,490
  2. Your total net loss does not exceed $32,490, and
  3. You otherwise meet the CalEITC and YCTC requirements
Learn More

Disaster Related Tax Relief

For communities that were impacted by the recent winter storms, the IRS (Internal Revenue Service) and the FTB (Franchise Tax Board) announced that taxpayers in counties under disaster declaration would be eligible for tax relief. Eligible households may qualify for both CalEITC, EITC, and disaster related tax deductions.

The FTB and IRS are providing tax relief by extending the deadlines for impacted taxpayers to May 15, 2023. The eligible returns include:

  1. Individual income tax returns due on April 18th
  2. Business returns normally due on March 15th and April 18th
  3. Farmers who would normally file their returns by March 1st

Affected taxpayers may also claim a disaster-related casualty losses on their 2022 federal and state income tax return or on their tax return for 2023. Please visit the IRS Press Release and the Governor’s Press Release on winter storm tax relief for more information on the extension, who qualifies, and how to claim disaster related casualty losses. 
 

Free Tax Preparation Services

To determine if you qualify for CalEITC and are eligible to receive a cash refund, all you have to do is file your taxes, no extra form or application is required. Free tax services are available in person and online to help people file their returns. These services include:

  1. Free File - An IRS service that allows an individual to file online directly through virtual forms, or through a partner website.
  2. CalFile - An FTB service that allows an individual to e-file their state tax return
  3. GetYourRefund - a free virtual service that is supported by the IRS
  4. For Riverside County residents, you may file in person at a local volunteer tax assistance location.

To find out more about these services, please visit the CalEITC4Me page.  

Thank you for reading and sharing this important information with our community. It is an honor to have the privilege to serve the residents of Senate District 31. If you have questions about resources, feedback on legislation, or problems with a state agency, please contact my office, my staff is here to help.


Very Sincerely,   

RICHARD D. ROTH
Senator, 31st District