This blog contains informative resources available across the web to prepare Federal and State taxes easily. This blog shares links, topics, free offers to prepare your federal and state tax return.
Showing posts with label California state tax. Show all posts
Showing posts with label California state tax. Show all posts
Choose the filing status and provide the gross income to calculate your state taxes. You can estimate your refund as per your taxes that you paid on your income.
California support personal income tax credit such as Non Refundable Renter's credit. If you paid rent for more than six months on your principal residence and meet the criteria listed below than you are liable to claim Renter's credit( $60 to $120) as per your filing status.
The Nonrefundable Renter's Credit is a personal income tax credit that can only be used to offset your tax liability; therefore, you must have a tax liability to claim the credit.
You can report this credit directly on all main form [Form 540/Form 5402EZ/Form 540NR].
You qualify for the Nonrefundable Renter's Credit if you meet all of the following:
You were a resident of California in 2009.
Your California adjusted gross income (AGI) is $34,412 or less if your filing status is single or married/registered domestic partner filing a separate return; or $68,824 or less if you are married/registered domestic partner filing jointly, head of household, or qualified widow(er).
You paid rent for at least half of 2009 for property in California that was your principal residence.
You did not live with another person for more than half the year (such as a parent) who claimed you as a dependent in 2009.
You are not a minor living with and under the care of a parent, foster parent, or legal guardian.
You rented property for more than half the year that was not exempt from California property tax in 2009.
If you are married, neither you nor your spouse/registered domestic partner was granted a homeowner's property tax exemption during 2009. (You can still qualify for the credit, even though your spouse/registered domestic partner claimed a homeowner's exemption, as long as each of you maintained a separate residence for the entire year in 2009).
Same way as Federal (Form 5805), California government do support New Home Buyer Credit in current tax year.
If you receive a Certificate of Allocation from the California Franchise Tax board, then you are eligible for claiming new home buyer credit.
This credit is a non-refundable credit. And will reduce your tax amount
If you can qualify for this credit, you can claim this credit on your Form 540 or Form 540NR. You can use code "219" for new home buyer credit in the given credit code to claim this credit. [As most of the Tax software company will put automatically if you qualify.]
Government Instructions are saying as below for Home Credit.
Home Credit – For taxable years beginning on or after March 1, 2009, and before March 1, 2010, a home credit against net tax will be allowed for the purchase of a never been occupied home in an amount equal to the lesser of five percent of the purchase price of a qualified principal residence or ten thousand dollars ($10,000).
So, The lesser of 5% of the purchase price of a qualified principal residence or $10,000. The credit is taken equally over three years.
[For more information see California FTB publication 3528]
California government supports the facility like “ReadyReturn” to prepare a simple tax return with ease of use on government website.
ReadyReturn :
ReadyReturn is a free service developed by California Government (FTB) to make filing individual income tax returns easier. It uses information the state already has from the last return you filed and from your Form W-2 to pre-fill a California state tax return.
If you are single and your income is only from wages, you may qualify for ReadyReturn. It simplifies the filing process by pre-filling a tax return with information the state already has.
CALFILE : A service from the California government for Tax Payer to file their tax return totally Free on California Government Website. California Government provides “CALFILE“ to help clients to prepare online Tax return on California Government Website.
If you fullfil all criteria mentioned below, you can qualify to use the CALFILE To file your California state taxes. [As most of the Taxpayer do qualify to use CALFILE for their California tax return.]
Be a California resident for the entire year.
You are filing a 2009 California personal income tax return.
Claiming up to 10 dependents.
Your only income is from Wages, Salary, Tips, Interest, Dividends, Unemployment compensation, paid family leave, and tax refund reported on Form 1099-G, 1099R, Form SSA-1099 etc.
Your Federal Adjusted Gross Income (AGI) can be up to.
$160,739 for single and married/registered domestic partnership (RDP) filing separately taxpayers.
$241,113 for head of household taxpayers.
$321,483 for married/RDP filing jointly and qualifying widow(er) taxpayers.
If you Qualify, you can File your California State Taxes using CALFILE free of cost on California Government Website. Click below to Start your California state taxes.
For Current Tax Year 2009, California government modified various limits. This information will help you to file and estimate your taxes.
California standard deduction amount
For single or married filing separately amount is decrease from $3,692 to $3,637 for tax year 2009.
For those who file married/RDP filing jointly, surviving spouse, or head of household taxpayers, the standard deduction decrease from $7,384 to $7,274 for tax year 2009.
California Personal Exemption Credit
For single or married filing separately is decrease from $99 to $98 for tax year 2009.
For those who file married/RDP filing jointly taxpayers, amount decrease from $198 to $196 for tax year 2009.
Exemption credit for Dependent change to $98 for Tax year 2009.
Exemption credit for Blind change to $98 for Tax year 2009.
Exemption credit for Age 65 or older change to $98 for Tax year 2009.
