• January 23, 2023

What You Need to Know This Tax Season

What You Need to Know This Tax Season

What You Need to Know This Tax Season 1000 587 Consumer & Business

Tax season 2023 is here and we hope this year starts off with fruitful beginnings. You work hard to make ends meet and you want to see yourself and your family thrive. We want to make sure that you know about a few tax season’s resources that can help increase your nest egg.


Tax credits can help reduce the amount of income tax you owe. Some tax credits are refundable tax credits, which can increase your tax refund amount if you owe less than the credit amount. Don’t miss out on claiming this (refundable) tax credit. Some families are eligible to receive up to $6,935.

Single and married people who worked full or part-time at some point during 2022 can qualify for the EITC if their income is below the following limits:

Children or Relatives Claimed Filing as Single, Head of Household, or Widowed Filing as Married Filing Jointly
Zero $16,480 $22,610
One $43,492 $49,622
Two $49,399 $55,529
Three $53,057 $59,187

To qualify, you must file a tax return and claim this credit.

California has its own set of tax credits to help hard working individuals and families. The California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit (YCTC) are refundable state credits that can reduce your tax bill or increase a refund. You may be eligible if you have earned income of $30,000 or less. The CalEITC gives approximately 3 million working California families additional resources to make ends meet. CalEITC eligible families can receive up to $3,417 depending on income and qualifying children. Those who qualified for the CalEITC may also receive up to $1,083 more if they have a child under the age of 6 by also claiming the Young Child Tax Credit. Many people who are eligible to receive the CalEITC do not to file an income tax return because they don’t make more than the $12,950 but if they don’t file, they can’t receive the credit.

Cal EITC 2022 tableAnd there’s more good news.

This tax year California introduced the California Foster Youth Tax Credit (FYTC). A refundable tax credit available for people who were in foster care at age 13 or older and placed through the California foster care system.

  • Must be between the ages of 18 through 25 at the end of the tax year.
  • Satisfy foster care verification requirement.
  • The maximum credit for tax year 2022 is $1,083 per qualifying individual (maximum of $2,166 if both primary taxpayer and spouse/RDP qualify).
  • FYTC will be adjusted annually for inflation.
  • The credit amount phases out gradually as earned income exceeds $25,000.

ITIN users and tax credits – which tax credits are available?

  • ITIN holders are eligible for the Child Tax Credit (CTC). If you file with an ITIN but your child(ren) has a SSN you qualify for the tax credit.
  • In California ITIN filers qualify for the California Earned Income Tax Credit and the Young Child Tax Credit.
  • The new California Foster Youth Tax Credit (FYTC)

If you want to file a tax return but cannot obtain a valid SSN, there are IRS Acceptance Agents and Taxpayer Assistance Centers available to help persons apply. Contact www.freetaxprepla.org to find a certified ITIN tax preparer.


The IRS Volunteer Income Tax Assistance (VITA) program offers free income tax preparation services to households claiming less than $60,000 in income. This service can help you avoid expensive, paid tax services and help you maximize your return. Vist FreeTaxPrepLA for a list of participating organizations and instructions on how to make an appointment.

Start preparing to file your return now. Here’s a list of documents your VITA preparer will need:

  • Photo ID for yourself and spouse
  • Information regarding your wages/expenses
  • Social Security card and/or ITIN Number for ALL family members
  • All W2 forms, 1099 forms, etc.
  • Copy of prior year tax return
  • Bank Account and routing number for Direct Deposit
  • Tuition fees & expenses
  • Total paid to day care provider and their ID number
  • Proof of foreign status if applying for ITIN (at selected sites)

If you’d prefer to file your return yourself, United Ways of California has a great online tax preparation website you can use. Visit www.myfreetaxes.org to file your return online using their program. MyFreeTaxes does not have an income limit.


California storm victims now have additional time to file various federal individual and business tax returns. The deadline to file 2022 individual and business tax returns and make payments is May 15 — almost a month after the original April 18 deadline — and is available to all business owners, households and residents in the 41 California counties listed in the federal emergency declaration approved by President Biden -this includes Los Angeles County.

California storm victims now have until May 15, 2023, to file various federal individual and business tax returns.

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