Stressed about tax season even though it's been postponed? You're not alone. With numerous stimulus checks, plus-up payments and child tax credit's flying around, many people are left confused and with lots of uncertainty as to how they should file for taxes and whether or not they are eligible for additional financial assistance through the American Relief Plan.
To top it all off, if you're a citizen of California, then you may be eligible to receive the 7.6 billion package 'Golden Gate Stimulus Plan', which superseded the third stimulus package by one month.
The two packages both include direct aid to citizens in the form of stimulus checks, with a one-time California tax rebate of 600 dollars for anyone who earned less than 30,000 dollars in the last taxable year, and 1,200 dollars in federal aid to individuals who earned less than 75,000 dollars a year.
The reason why the Golden State extended an additional form of aid to Californians was to aim to support low-income Californians and to help those facing hardship due to COVID-19 according to the IRS website.
However, a new report shows that this aid is not reaching those in need.
"We estimate that 2.2 million low-income Californians who are on safety net programs like CalFresh or CalWORKs are missing out on 5.7 billion dollars in stimulus payments," said Aparna Ramesh, senior research manager with the California Policy Lab and co-author of the report.
This is happening because the IRS has been using previous years' tax filings as indicators of who is eligible and what amount they are eligible for, but this overlooked people who had little or no income over previous years and didn't require to file taxes.
FTB Stimulus: To qualify, you must:
If you have a low income and work, you may qualify for CalEITC. This credit gives you a refund or reduces your tax owed. If you qualify for CalEITC and have a child under the age of 6, you may also qualify for the Young Child Tax Credit. Filing your state tax return is required to claim both of these credits.
To qualify for CalEITC, you must:
According to the IRS webpage, these stimulus payments will be issued twice a month after eligible 2020 tax returns are processed.
So, if you filed your tax return between January 1 and March 1 then you will receive your stimulus payment beginning after April 15, 2021. If you are expecting a paper check, it could take up to four to six weeks for it to arrive in the mail.
If, however, you filed your tax return on or after March 2, 2021, then your stimulus payment will not be scheduled until your return is processed. Once your return is processed then it will take up to 45 days for direct deposits and up to 60 days for paper checks.
To make sure you receive your payment, file your 2020 tax returns by October 15, 2021.
For the first time ever, undocumented workers will now be eligible for the California Earned Income Tax Credit this year. Any persons who qualify for the EITC would also qualify for the Golden State Stimulus as well so you would be eligible for a one-time payment of 600 dollars.
If the head of household is undocumented and the spouse or children have legal immigration status, that is no longer an obstacle to receiving the California EITC as long as the taxpayer has a valid ITIN number and makes under 30,000 dollars they should qualify.
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