Most Californians don’t need to submit their taxes until Oct. 16, 2023. Due to the the winter storms, the tax deadline has been extended for all but 3 counties in California.
CPA Larry Pon explains who is impacted by the new deadline, contributions that will lower your tax bill and what you need to know about the middle class tax refund.
#taxes #tax #taxday #middleclasstaxrefund #taxrefund #abc7news…(read more)
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As the tax season approaches every year, many taxpayers face the pressure of filing their tax returns and ensuring they’re not missing anything. However, sometimes circumstances prevent them from completing the task on time. For instance, a taxpayer may not have all the necessary documents or resources to file their tax returns before the April 15th deadline. Fortunately, the state of California offers tax extensions to aid such taxpayers in this situation.
Individual taxpayers are eligible for an automatic six-month tax extension (until October 15th), without requesting an extension or showing just cause. The tax extension applies whether you owe taxes or not. To qualify, taxpayers need to submit their extension document via mail or e-file through an authorized service provider before the April 15th deadline.
While this tax extension can aid individuals who need more time to prepare and file their tax returns, the amount owed must be paid by the original deadline to avoid penalties and interest. Failing to pay before the deadline incurs a 0.5% monthly interest on the unpaid balance. Therefore, if you are applying for a tax extension, ensure you meet the payment deadline to avoid incurring interest.
However, the exciting news this 2021 tax season is the Middle Class Tax Refund, also known as the CalEITC or Earned Income Tax Credit. California taxpayers will be eligible for a significant tax refund if they meet the CalEITC requirements.
The CalEITC is a state-operated and federally funded tax credit program that aims to benefit low and moderate-income families. The tax refund varies based on the earned income, filing status, and the number of dependents. The maximum refund for the CalEITC is $2,981, with nearly 4 million taxpayers expected to benefit from this year’s program.
To qualify for the CalEITC tax refund, taxpayers must have earned below a certain income threshold for the year. The 2020 income thresholds for CalEITC eligibility are as follows:
– Filing as single or head of household with one qualifying child: $30,000 or less
– Filing as married filing jointly with one qualifying child: $54,000 or less
– Filing as single or head of household with two or more qualifying children: $56,844 or less
– Filing as married filing jointly with two or more qualifying children: $60,000 or less
Additionally, if you’re eligible for CalEITC, you might also qualify for the Young Child Tax Credit (YCTC). The YCTC offers an extra refund of up to $1,000 for families with at least one child under six years of age.
The CalEITC and YCTC refunds do not count as taxable income and do not affect eligibility for other government assistance programs such as Medi-Cal, CalFresh, or cash assistance.
Failing to file taxes on time or make tax payments as required can lead to serious legal and financial consequences. However, the California tax extension and the Middle-Class Tax Refund offer relief to taxpayers who may face difficulties in meeting their obligations. If you’re experiencing challenges in preparing and filing your tax returns before the April 15th deadline, consider applying for a tax extension and qualifying for the CalEITC and YCTC refund to avoid penalties and maximize your tax benefits.
Imagine living in a state that has a a high income tax, unaffordable housing and rampant crime. You pay all the high taxes and you still have to deal with homelessness.
3:38 He looks a bit like Jim Carey! Do you see it?
Thank you Larry and ABC 7 for the explanation!
Is this automatic or do need file for a extension
Do we have to file for the extension?
No love for Shasta County? The storms probably had as much impact in Shasta as in Santa Clara County, if you don't count the speeder spinouts on the roads on 880.
He said it also affects 2023 taxes , something about payments. that confused me/// so next year in 2024 our taxes wont be due right away for 2023?? somebody please explain.
Howcome the 3 counties have the April 18th deadline? Why are they ousted from this extension?
CA is a pit! Gavin will be the death of CA!
I live in Alameda county. So I'm good
tax refunds are such a scam. if you really wanted to help people just lower the dam taxes and stop being so cryptic about it. the IRS knows what you owe every year why do you have to play a guessing game with them
You have to have integrity in the US PS, they’re not gonna lose your mail!
"We've been declared a disaster in California" yes we have…a total disaster!
Thanks for the info!
4:45
Don't trust the government. This is just a way the IRS can milk more money out of us. Just try to explain or even get through to them to say "they" gave us an extension.
Don't believe me? I called the IRS to ask about this. The two people I spoke to after 26 minutes on hold, couldn't give me an answer. In fact, they both had two different replies.
Just wait till Biden hires the 20,000+ agents to audit all of us.
If you are due a refund, there is no reason to wait until October 2023 to file? How about if you file now, and then end up getting a corrected 1099 between now and October 16? On the theory that companies would want to get their corrected 1099s out before the usual April 15th deadline, I think I'll wait until maybe late April before filing.
Thx 4 info
I wonder when I will receive my tax return money
1A/2A protect us from unfair Taxation Without fair Representation.
I don’t want to pay taxes cause I don’t want my money going to Ukraine
I saved 15k in tax by moving Texas.
Love your facial expressions Mike
don't pay taxes!
DEI report…
Biggest thing you need to know is, the corrupt failed Democrat controlled Charcoal State of California has the highest State tax rate in the USA! MORE from the corrupt failed Democrat controlled Charcoal State of California!