Tag Archives: taxes

2019 California Earned Income Tax

Q:  I understand that the California Earned Income Tax Credit was expanded last year and that it is now available to transition-age youth, age 18 to 21, regardless of their parenting status.  Is there a minimum amount that a youth has to earn to qualify for the CalEITC? What materials are available to share with youth in my county?

A: Yes, the California EITC (CalEITC) was expanded from $400 million to $1 billion annually in the 2019-20 budget. This expansion made the following changes:

  • Expanded eligibility to families that earn up to $30,000 annually;
  • Increased the maximum credit to $2,982 for CalEITC, plus a maximum credit of $6,557 for federal EITC
  • Added a Young Child Tax Credit, which is an additional credit of up to $1,000 for tax filers who meet CalEITC requirements and have a child under six years old by the end of the year.

The California Franchise Tax Board has updated its materials for the 2019 tax year. To download the updated materials, follow this LINK.

John Burton Advocates for Youth will host a website on strategies to help transition-age youth access the CalEITC on January 30, 2020 from 10:00 a.m. to 11:30 a.m. To register, follow this LINK.

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IRS Verification of Nonfiling

Q: Last year, students who submitted a FAFSA but hadn’t filed a tax return were required to submit a “verification of nonfiling letter” from the IRS. This was a very onerous requirement and students struggled to obtain the documentation. Have there been any changes to this requirement to make it easier?

A: The Department of Education issued a notice recently outlining some changes to these requirements. According to the notice, institutions now have greater flexibility when verifying a student’s nonfiling status. The notice states that if the individual is unable to obtain verification from the IRS or other tax authorities and, based upon the institution’s determination, it has no reason to question the student’s good-faith effort to obtain the required documentation, the institution may accept a signed statement certifying that the individual attempted to obtain the verification and was unable to obtain the documentation along with W-2 forms from any source of employment income.

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Minimum Income for Filing Taxes

Q: I am working with youth to ensure they file their income taxes before the April 17 tax filing deadline. What is the minimum income level after which an individual is required to file taxes?

A: Assuming the youth is single, those who make $10,400 and over are required to file a tax return for 2017. However, even if they do not meet the minimum required income, youth should consider filing taxes if they can get money back.  According to Efile.com, an individual can get money back for the following reasons:

  • If they had taxes withheld from their pay, they must file a tax return to receive a tax refund.
  • If they qualify, they must file a return to receive the refundable Earned Income Tax Credit.
  • If they are claiming education credits, they must file to be refunded the American Opportunity Credit.
  • If they have a qualifying child but owe no tax, they can file to be refunded the Additional Child Tax Credit.
  • If they qualify, they must file to claim the refundable Health Coverage Tax Credit.
  • If they overpaid estimated tax or applied a prior year overpayment to this year, they must file to receive the refund.

For assistance with filing taxes, please visit a Volunteer Income Tax Assistance (VITA) site near you.  You can find a site near you by visiting www.CalEITC4Me.org and using the Free Tax Prep Finder Tool, or call the IRS at 1-800-906-9887.

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