FINANCIAL NEWS
Requirements to receive up to $10,000 for State and Local Taxes (SALT): Credit and deductions
If filers are eligible for two tax credits this filing season then they could be looking at a rather healthy refund but only if you live in California.
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Every tax year millions of Americans qualify for tax refunds. Although the IRS has said they expect refunds to be smaller this year, with the evidence suggesting they are correct, there are opportunities for some taxpayers to receive bumper refunds if they qualify for the Earned Income Tax Credit (EITC) and the California Earned Income Tax Credit (CalEITC).
It is only through qualifying for both of these credits that you can receive the $10,000 deduction.
The Earned Income Tax Credit
Below are the requirements to receive the EITC in the United States:
- Have worked and earned income less than $59,187
- Have investment income less than $10,300 in tax year 2022
- Have a valid Social Security number by the due date of your 2021 return
- Be a US citizen or resident alien for the entire year
- Cannot file a Form 2555 (Foreign Earned Income)
EITC refunds will begin to be issued until the end of February. The exact date will depend on the moment the taxpayer made their declaration.
The California Earned Income Tax Credit
To qualify for CalEITC you must meet all of the following requirements during the tax year:
- You’re at least 18 years old or have a qualifying child
- Have earned income of at least $1.00 and not more that $30,000
- Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for you, your spouse, and any qualifying children
- Live in California for more than half the filing year
- Not be eligible to be claimed as a qualifying child of another taxpayer
- Not be eligible to be claimed as a dependent of another taxpayer unless you have a qualifying child