Roseville, CA Accountant for State Tax Credits
Cook CPA Group
Tax credits are a type of incentive that allows taxpayers to subtract certain amounts from the amount that they owe. Claiming tax credits that they qualify for results in either a lower tax bill or higher refund for taxpayers. In California, taxpayers—individuals and businesses—are able to claim tax credits for various qualifying conditions.
Identifying and claiming credits on taxes in California may take some assistance. Taxpayers in the Roseville area are encouraged to get in touch with the Roseville state tax credit accountants from Cook CPA Group for help with claiming state tax credits when filing either their personal or business taxes. For more information about Cook CPA Group’s ability to make your experience with claiming tax credits simpler and more streamlined, get in touch today. Call (916) 432-2218.
The State Tax Credits You Can Claim in California
Both businesses and individuals are able to claim tax credits in California. The following are the specific tax credits that businesses and individuals may claim while filing their taxes.
Personal Tax Credits
Credits that individual taxpayers may claim in California include:
- Earned Income Tax Credit and Young Child Tax Credit – Taxpayers qualify for the Earned Income Tax Credit if they have earned taxable income (from either W-2 wages, self-employment, salaries, or tips) and live in California for more than half of the year. Taxpayers may also be eligible for a Young Child Tax Credit if they have a child under the age of 6.
- Child Adoption Costs Credit – If you have adopted a child, you may be able to claim a credit for 50% of the cost of adoption. People that are U.S. citizens or legal residents (or that are in the custody of a California agency or political subdivision) can qualify for this tax credit. The credit will include reimbursement for fees charged by an adoption agency, the child’s medical costs that were not covered by insurance, and the cost of travel while going through the adoption process.
- Child and Dependent Care Expense Credit – Paying someone else to take care of your spouse, child, or other dependent may make you eligible to receive a Child and Dependent Care Expense Credit. Taxpayers only qualify for this credit if they earned income during the year. Taxpayers should note that this credit cannot be included in a refund.
- College Access Tax Credit – Taxpayers can qualify for the College Access Tax Credit if they contributed to the California Access Tax Credit Fund, which helps provide low-income college students with financial aid. The credit that can be claimed will be 50% of the taxpayer’s contribution.
- Dependent Parents Credit – This credit can be claimed by taxpayers that have cared for an elderly parent. Taxpayers may only qualify if they were married but filed separately from their spouse, did not live with their spouse, and paid for more than half of the household expenses for their parent. The most a taxpayer can claim for this credit is $469.
- Joint Custody Head of Household – Parents that share joint custody of a child and that pay for more than half of the child’s living expenses may claim this credit. Taxpayers cannot claim this credit if they are married and file jointly with their partner, head of the household, or a qualifying widow or widower. Taxpayers cannot claim more than $469 for this credit.
- Prior Year Alternative Minimum Tax – If you had an Alternative Minimum Tax credit carryover from a previous year and paid for Alternative Minimum Tax or paid an Alternative Minimum Tax credit for a previous year and then had adjustments and preference items that were not exclusion.
- Nonrefundable Renter’s Credit – Taxpayers that have paid rent in California may be eligible for a tax credit. Taxpayers can qualify for this tax credit if they paid rent in California for at least half of the year on a property that was not tax-exempt, their income was less than $41,641 if filing as a single person, did not live with someone that they can claim as a dependent, and were not given a property tax exemption. This credit is $60 for people that are filing alone and $120 for joint filers.
- Senior Head of Household Credit – If you were 65 years or older and you qualified for head of household in the past but your qualifying person died within the past two years, you may qualify for the Senior Head of Household Credit. To qualify, your income must be less than $76, 082.
- Other State Tax Credit – To offset income taxes that you paid to both California and another state, you may claim the Other State Tax Credit.
Business Tax Credits
Credits that businesses may claim in California include:
- California Competes Tax Credit – This credit is available to businesses that are attempting to come to California to grow. It is a 5-year agreement that allows businesses to commit to meeting yearly milestones in exchange for a yearly tax credit.
- California Research Credit – Engaging in qualified research activities in California may make your business eligible for the California Research Credit.
- California Motion Picture and Television Production Credit – Motion pictures or television shows that are produced in California are likely to qualify for this tax credit.
- New employment Credit – This credit may be issued to employers that hire qualified full-time employees and pay wages to those employees in a designed geographic area.
Work with Roseville Accountants for Claiming State Tax Credits
Claiming tax credits that you or your business qualify for is an important aspect of financial health. Use the help of an experienced tax credit accountant to identify and claim the tax credits that you’re entitled to. Roseville tax credit accountants from Cook CPA Group pride themselves in an ability to help taxpayers throughout all phases of tax planning and preparation, including claiming state tax credits. Get in touch with the accountants from Cook CPA Group today by calling (916) 432-2218.