Hey, guys, it's Ginny Silver.
And today I have an update for those of you who filed your
California State income taxes already.
And you are wondering if you need to amend your California
State income taxes due to the fact that the 10,200 dollars
worth of unemployment benefits that are to be untaxed for
tax or 2020 has impacted your AGI and you now know that
you may qualify to receive additional tax credits on your
state return.
Well, many of you have been wondering if you need to amend
your 2020 California state income tax.
Previously, the Franchise Tax Board stated in their news
releases that you were to await more information that you
were not to amend yet, but you were to wait and see if they
would be able to do it automatically.
The FTB has updated their information and they have stated
that you are not required to file an amendment.
However, there may be an additional piece of paperwork that
you need to submit into the Franchise Tax Board in order
to make sure that you receive all credits that are due.
But before I go any further, I'm not a CPA, an accountant,
or tax preparer.
Please take all of your questions about your own unique situation
to a tax professional.
The franchise tax word States that the American Rescue Plan
Act of 2021 excludes a certain amount of unemployment from
your federal AGI for your 2,020 tax year based on your filing
status. If you are single, you will exclude up to 10,200
dollars from your federal AGI.
And if you're married, filing jointly or register domestic
partners, you are eligible to exclude up to 20,400 dollars
from your federal AGI.
Now, this 10,200 dollar benefit per individual applies to
Tax Year 2,020 for individuals who have an AGI below 150,000
dollars. Now, if you already filed your 2020 tax return
before March 11th and you did claim the Cal EITC and you
reported unemployment income, you don't need to do anything.
The FTB will make the changes for you.
If you qualify for a bigger tax refund, you'll receive it
beginning August 2021.
If you filed or will file your 2020 tax return after March
11th 2021 and you did claim a Cal EITC and you reported
unemployment income, you don't need to do anything.
Your tax return will be processed with the updated requirements
filed your 2020 tax return and you did not claim a Cal EITC.
You did report unemployment income and your federal AGI less
than 40,201 dollars if you're single or 50,401 dollars.
If you're married filing jointly, then you need to see if
you qualify for a Cal EITC.
If you do qualify, you will need to download, print, and
complete the I Earned Income Tax Credit Form, which is FTB
Form number 3-5-2-1.
I'm going to link this form in the video description.
You will then mail this form to Franchise Tax Board at the
address listed.
You will not need to amend your tax return.
Now, how do you know if you qualify for a Cal EITC?
You must be at least 18 years old or have a qualifying child.
You have earned income within certain limits.
Now, unemployment income, according to the California Franchise
Tax Board, is not earned income, so you must have some form
of earned income is what the Franchise Tax Board state must
have taxable earned income, a valid Social Security number,
or an ITIN number.
You may not use married RDP filing separately.
You must live in California for more than half of the year,
and you must have a maximum income of 30,000 dollars.
Now, if you qualify to receive a Cal EITC, then you may qualify
to receive a Golden State stimulus.
In order to qualify to receive a Golden State stimulus, you
must be a Cal EITC recipient, an ITIN filer who made 75,000
dollars or less live in California for more than half of
the 2020 tax year.
Be a California resident on the date that payment is issued
and not be eligible to be claimed as a dependent.
So for those of you that have already filed but did not claim
a Cal It, click the link in the video description down below,
and that is where you can locate the form that you must fill
out and mail into the Franchise Tax Board in order to claim
this. Okay, you guys, I hope that was helpful.
Please click Like Subscribe and leave me a comment down below.