California residents meeting specific criteria can potentially boost their tax refunds in the upcoming tax season. Eligible individuals can receive a one-time tax rebate of up to $12,076 by qualifying for benefits from three essential programs: the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit (YCTC), and the Federal Earned Income Tax Credit.
CalEITC aims to support low-income Californians, offering $3,529 for the tax year 2023 if the family or individual earns $30,950 or less annually. Additionally, the Young Child Tax Credit (YCTC) provides up to $1,117 per eligible tax return for California families with earned income of $30,931 or less. To qualify for YCTC, families must have a qualifying child under six years old at the end of the tax year and meet CalEITC criteria.
A new addition for the tax year 2023 is the Foster Youth Tax Credit (FYTC), providing up to $1,117 per eligible individual or up to $2,234 if both the primary taxpayer and spouse are current or former foster youth. To qualify for FYTC, individuals must have received care at age 13 or older and were placed through the California foster care system.
Claiming these credits involves filing a state tax return to access CalEITC, YCTC, and FYTC. Additionally, filing a federal return with the Internal Revenue Service (IRS) is essential to receive the federal Earned Income Tax Credit (EITC).
These programs contribute to financial relief for eligible California residents, emphasizing the importance of understanding and meeting the criteria outlined by each program. By navigating the intricacies of these tax credits, individuals and families can maximize their potential for increased tax refunds during the upcoming tax season.
