The Franchise Tax Board (FTB) announced it is now accepting 2013 state tax returns. Also, the FTB provides the following updates on law changes and filing services brought to you in this blog series – Part IV.
• Volunteer Income Tax Assistance – Starting in February, free tax help is available through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly Programs (VITA/TCE). Trained volunteers at more than 1,000 sites throughout California provide free help to complete tax forms for low-income, senior, disabled, and non-English speaking persons who need to file simple federal and state tax returns.
Many military bases provide this service for the U.S. Armed Forces. For information on locations throughout California, go to ftb.ca.gov and click on the free filing assistance link.
• Use tax – Taxpayers may owe use tax on purchases made from out-of-state or Internet sellers. Use tax can be reported on the California income tax return instead of filing a use tax return with the State Board of Equalization. Taxpayers can use a “look-up” table to report their use tax obligations. The estimated amount of use tax due is based on the person’s adjusted gross income. For more details, visit the BOE’s website.
• Federal Earned Income Tax Credit (EITC)- This is a federal incentive for low-to-moderate income individuals and families. Taxpayers earning less than $51,567 can qualify for a “refundable” credit that can total up to $6,044. “Refundable” means that taxpayers do not have to have a tax liability to get a refund check from the federal government. Taxpayers can check if they qualify by visiting the IRS website at irs.gov and searching for EITC Assistant. California has no comparable state credit.
Changes for Businesses Filers
Geographically Targeted Economic Development Area (G-TEDA) Tax Incentives Repealed – The Governor’s 2013 Economic Development Initiative [Assembly Bill (AB) 93] repealed and made changes to all of the G-TEDA Tax Incentives. Enterprise Zones (EZ) and Local Agency Area Military Base Recovery Areas (LAMBRA) were repealed on January 1, 2014. The Targeted Tax Areas (TTA) and Manufacturing Enhancement Areas (MEA) both expired on December 31, 2012. AB 93 changed the credit carryover period to 10 years for any taxable year beginning on or after January 1, 2014. In addition, the EZ Employee Credit and the New Jobs Credit are also repealed as of January 1, 2014.
More information on the Repeal of the G-TEDA tax incentives can be found on FTB’s Website.
Source: FTB Public Affairs Office