SACRAMENTO, Calif. — It’s that time of year again…
Tax season is here and if you have questions about filing, we want to help get you answers. Everyone is asking?
Do California taxpayers who received stimulus checks have to pay taxes on them?
The short answer for 2022 filers is no. The IRS says California’s middle-class tax refund doesn’t need to be reported as taxable.
Contact us if you have any additional questions? 818 899-9617
How to qualify, you must:
When you’ll receive your payment:
We anticipate that payments will begin in September 2021.
To make sure you receive your payment, file a complete 2020 tax return by October 15, 2021.
If you have an ITIN and meet all the GSS II requirements, these are the amounts you may receive.
| Scenario | Stimulus amount |
|---|---|
| Qualified for GSS I Claimed a credit for 1 or more dependents) | $1,000 |
| Qualified for GSS I Did not claim a credit for 1 or more dependents | You do not qualify for GSS II |
If you are married filing separately, visit Married filing separately for more details.
The $1.9 trillion Covid relief bill gives a tax break on unemployment benefits received last year. The measure allows each person to exclude up to $10,200 in aid from federal tax.
The bill made the first $10,200 of unemployment income, or $20,400 for married couples filing jointly, tax-free for filers with 2020 adjusted gross income of less than $150,000 (for both singles and couples). This applies to your federal tax return. In California Unemployment is nontaxable.
Not everyone qualifies for the tax cut. Only people who earned less than $150,000 in 2020 are eligible.
This income threshold operates as a cliff: Anyone who earned $150,000 or more last year doesn’t get any of the tax break.
The $150,000 ceiling is the same for all taxpayers, regardless of filing status, such as single or married.
One wrinkle: Taxpayers must use their total unemployment benefits received when determining their income eligibility for the tax break.
Are you getting a w-2 because you provide In-Home Supportive Services? If you do not pay taxes on this income, can you still get an earned income credit? And child tax credit? There is not (yet) a published IRS regulation on this topic. However, in this court ruling, it was found that tax credits can be claimed. Please consult with your Yessenias Income agent for more information on In-Home Supportive Services.
IHSS In-Home Supportive Services payments can still be included on taxes and excluded from gross income. This is critical because they still can affect the tax credits or other tax-related matters, such as qualifying income for contributing to a Roth IRA. Make sure to bring in all your forms when you come to do your income taxes so that a tax consultant can go over the benefits and help you get the maximum refund you qualify for.
See more information on Medicaid Waiver Payments May Be Excludable on the IRS website. This is new information relating to this subject. It is important to file your income tax and remind your tax preparer about IHHS services you are providing for your clients. If you come to Yessenias our agents will remind you if you provide this service as we like to go into detail with our customers and find them the maximum return. If you are not a customer come to one of our offices for a free estimate. In-Home Supportive Services is a very complex topic and we are here to help.
Individuals who do not normally have a filing obligation (non-filers) and have children under the age of 17 who also don’t have a filing obligation, have until 9:00 a.m. PST (12:00 p.m. EST) Wednesday, April 22, to visit the IRS “special non-filer tool” to enter information in order to add $500 per eligible child to their automatic payment of $1,200!
The $1,200 automatic payments will be starting soon for those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries. Those that fall into any of these categories and who didn’t file a tax return in the last two years, must act now to add $500 per eligible child under the age of 17 to that payment.
However, according to IRS COVID Tax Tip 2020-40, if you miss the deadline, the payment will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020.
To read the entire notice click here!
If you filed your 2018 or 2019 taxes, were due a refund, and signed up to receive that money via direct deposit, you may already be sitting on your stimulus payment. But if you didn’t file a 2018 or 2019 tax return, or you filed one but weren’t due a refund and therefore didn’t include bank account details, then you’ll need to give the IRS that information so your stimulus payment can be processed quickly.
The most recent bank account information the IRS has on file will be used to determine where your stimulus payment should land. But if you’ve since closed that account, any stimulus money that gets sent there will be bounced back, thereby delaying your payment
If the IRS doesn’t have bank account details for you on file, and you have no intention of providing direct deposit information, then you’ll need to wait for a physical stimulus check to arrive in your mailbox. And that could take a while. It’s anticipated that physical checks will start getting sent out in early May, but only a certain number will be issued per week. Meanwhile, those paper checks will be prioritized so that low-income households receive them first, and all told, it could take up to 20 weeks to mail all of them out.
Millions of Americans are waiting for checks from the federal government to help them through economic fallout from the coronavirus outbreak. The IRS has set up a website to help people track the so-called economic impact payments, as well as determine payment eligibility.
Payment status can be checked here.
Los hogares deben cumplir con los tres requisitos criterios siguientes para ser elegibles para recibir asistencia a través de la iniciativa Tarjeta Angelino:
In the coming weeks the Treasury Department plans to distribute automatically economic impact (stimulus) payments, with no action required for most people. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are automatically eligible and will not be required to file a return. However, some individuals such as low-income workers and certain veterans and individuals with disabilities who typically do not file returns will need to submit a “simple” tax return to receive stimulus money.
If you need to file a simple return please call us at 818 899-9617
El pago se reduce en un cinco por ciento de cada dólar por encima de la marca de ingresos de $ 75,000 por año y las personas que ganan más de $ 99,000 y las parejas con un ingreso combinado de más de $ 198,000 no calificarán. Los contribuyentes conjuntos que $ 198,000 o más por año también están exentos de recibir el pago.
Según el progressive Economic Policy Institute, los inmigrantes que presenten impuestos utilizando un Número de Identificación de Contribuyente Individual (ITIN) en lugar de un Número de Seguro Social estarán exentos de pagos, lo que según la institución excluye a un estimado adicional de 4.3 millones de adultos y 3.5 millones de niños. del beneficio Los cheques únicos también irán solo a aquellos estadounidenses que hayan presentado una declaración de impuestos este año o en 2019.