The California Franchise Tax Board has reminded taxpayers that October 16 is the deadline for most Californians to file and pay their 2022 taxes to avoid penalties.
FTB also offered guidance for those owing multiple tax payments this filing season, and provided tips on claiming tax credits, filing a tax return for free, tax relief related to natural disasters, and avoiding scams.
“We want to ensure no one forgets that October 16 is the final tax filing and payment deadline for most of California,” said State Controller and FTB Chair Malia M. Cohen. “I also want to remind Californians that by filing a state tax return they can claim the California Earned Income Tax Credit and the Young Child and Foster Youth state tax credits, if they meet income qualifications. These cash-back credits can put hundreds or even thousands of dollars back in the pockets of families struggling to make ends meet.”
Extended Tax Deadline
FTB followed the IRS in extending this year’s original April 18 tax filing and payment deadline to October 16, 2023, for 55 California counties with a federal disaster declaration related to severe winter storms (late 2022/early 2023).
Visit https://www.ftb.ca.gov/file/when-to-file/Emergency-tax-relief.html for more information.
Tax Return Filing Trends
Californians file more than 20 million state personal income tax returns annually. FTB expects about three million more tax returns to be filed by October 16, 2023. Compared with this time last year, there are currently about one million more outstanding returns.
Importance of Making Multiple Tax Payments Separately
Disaster declarations related to last winter’s storms extended the due date for multiple personal and business tax payments covering two tax years. To ensure their tax payments are processed timely and accurately, FTB asks that taxpayers not combine payments for different tax years, and submit separate checks for each payment type (e.g. personal income tax and quarterly estimated payments.) For more information, visit https://www.ftb.ca.gov/file/when-to-file/disaster-declarations-tax-payments.html.
Cash-Back Credits: California Earned Income Tax Credit (CalEITC), Young Child Tax Credit (YCTC), and the new Foster Youth Tax Credit (FYTC)
Californians with income up to $30,000 might qualify for CalEITC, which can provide cash back or lower any tax owed. Those eligible for CalEITC and with a child under the age of six may receive up to $1,083 from YCTC, which beginning this year does not require income if all other CalEITC and YCTC requirements are met. In addition, those earning less than $59,187 may also qualify for the federal EITC. Between CalEITC, YCTC, and the federal EITC, a family can receive up to $11,435. FYTC provides up to $1,083 for tax year 2022 forward. CalEITC, YCTC, and FYTC are claimed by filing a state tax return. The federal EITC is claimed on a federal return. For a calculator to estimate your credits, and more: ftb.ca.gov/caleitc.
File for Free, Free Tax Help and FTB Pay Online Services
Most taxpayers can file their state tax return electronically, free of charge, using FTB’s CalFile program. CalFile and a list of other free or fee-based e-file services are available on FTB’s website (ftb.ca.gov). FTB recommends taxpayers opt for direct deposit to their bank accounts to ensure a timely and safe refund. E-filing provides faster refunds, increased accuracy, and immediate confirmation that FTB has received a return.
Taxpayers are also encouraged to use FTB’s electronic payment option, Web Pay. It allows taxpayers to authorize a tax payment from a bank account. Individual taxpayers can use their MyFTB account to schedule payments and view and securely access their tax information.
Help With Tax Payments
FTB encourages taxpayers who can’t pay their full tax bill to file on time and pay as much as they can as soon as they can to limit penalties and interest. Payment plans are available on the FTB website for taxpayers facing financial hardship. People who owe $25,000 or less and can repay within five years generally qualify.
Beware of Scams
FTB urges taxpayers to protect themselves from scams. Scammers often prey on taxpayers by impersonating IRS or FTB employees. They may attempt to trick taxpayers into sending money not owed or providing personal information that could be used to file fraudulent returns and steal refunds. If you receive a letter from FTB or the IRS that appears suspicious, contact FTB at 800-852-5711 or the IRS at 800-829-1040. Visit https://www.ftb.ca.gov/help/scams/index.html for more information on common types of scams.
One-Time Penalty Cancellation Relief
A new law allows FTB to grant individual taxpayers a one-time cancellation of a penalty for filing or paying their taxes late. To receive this relief, taxpayers must be compliant with all tax return filing requirements, have not previously been granted a one-time abatement, and have no outstanding tax liabilities (other than the timeliness penalty the taxpayer wants canceled). The relief applies to tax year 2022 forward. FTB will begin accepting one-time penalty cancellation requests on October 17, 2023. For more information, visit https://www.ftb.ca.gov/pay/penalties-and-interest/one-time-penalty-abatement.html, or call 800-689-4776.
Submitted by California FTB