California Expands Tax Credits and Thousands of Individuals Who Need it Most May Not Claim it
Including creating the state’s 1st $1,000 benefit for former foster youth, California is expanding the coverage of its tax credits. Gov. Gavin Newsom signed the state budget last month, which includes more than $100 million to expand California’s tax credits for low-income Californians.
Though, State Officials are plagued with conundrums. Not everyone eligible can claim credit, and those who need it most may not need to file taxes at all.
Part of the reason is that low-income earners don’t have to file taxes in California. $19,310 gross annual income is the threshold requirement for a single Californian with no dependents.
According to a published post by Yahoo News, about half of households receiving CalFresh food benefits were not receiving state income tax credits, even though they were eligible, founded by the last year’s study released by the Nonpartisan California Policy Lab.
Another hurdle is cost; accountants can claim up to $300, which mitigates potential loan impact. Starting in 2015, advocacy groups have launched a tax credit report campaign and coordinated free tax preparation and filing centers statewide since California started a program to reflect Federal interests.
California is expanding tax credits. Thousands who need it most may not claim them (Photo: Yahoo News)
Thousands of Individuals Who Need it Most May Not Claim it As California Expands Tax Credits
As reported by the California Policy Lab, the state lacks sufficient data, so it’s unclear to the entire people who might qualify for tax credits but didn’t claim.
According to a 2020 report by the California Policy Lab, some state public relations efforts have proven inadequate. In two years text messages and letters have reached more than one million eligible Californians, prompting them to claim the credit.
Instead, advocates stated that the priority should be on reasonable community-based tax assistance, permitting applicants to receive other benefits they didn’t know they were eligible for and streamlining the process for other government programs. Resulting inan upsurge effect of claiming the tax credit, they said.
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