Sacramento Accountant for State Tax Credits
Cook CPA Group
California offers tax credits to people and businesses in Sacramento, CA that allow them to either reduce the total amount of taxes that they owe to the state or increase the amount that they can receive as a refund. By being diligent about claiming all of the credits that they qualify for, individuals and businesses that are based in California can reap more benefits from their taxes.
An accountant can help individuals and businesses figure out which state tax credits they qualify for. The Sacramento state tax credit accountants from Cook CPA Group can help California-based individuals and businesses claim all of the state tax credits that they qualify for. If you would like to learn more about how you use Cook CPA Group’s services to claim state tax credits in California, call (916) 432-2218.
State Credits That Can Be Claimed in Sacramento, CA
The following are state tax credits and businesses and individuals that are based in Sacramento can claim with the help of an experienced accountant.
Business Tax Credits
State taxes that Sacramento businesses can claim include:
- New Employment Credit – The New Employment Credit can be claimed by employers in designated geographic areas (DGA) that have hired qualified full-time employees. The employer must meet certain requirements (such as paying qualified wages to the employee) to be able to claim this credit; the employees that they hire must meet certain requirements as well.
- California Motion Picture and Television Production Credit – This California tax credit can be used to reduce the amount of taxes paid by LLCs that produce television and films. There are three types of California Motion Picture and Television Production Credits that can be claimed: original motion pictures, new motion pictures, and third motion pictures.
- California Research Credit – Businesses that perform qualified research in California can claim this credit. They may claim either 15% of the expenses that exceed a certain amount or 24% of their basic research payments.
- California Competes Tax Credit – If businesses come to California to grow and commit to meet yearly milestones for 5 years, they can claim this tax credit.
Personal Tax Credits
The following are tax credits that individual taxpayers in Sacramento are able to claim:
- Earned Income Tax Credit and Young Child Tax Credit – This state tax credit can be claimed by taxpayers that have earned taxable income while living in California for a length of time that is longer than half of a year. Earned taxable income includes W-2 wages, self-employment, yearly salaries, and tips. It is also possible for taxpayers to claim the Young Child Tax Credit if they have a child that is under the age of 6.
- Child and Dependent Care Expense Credit – Taxpayers that pay someone else to take care of their child, spouse, or other dependent are likely to be qualified to claim a Child and Dependent Care Expense Credit. Taxpayers are only eligible to receive this state tax credit if they earned income at some point during the tax year. This credit cannot go towards a refund, only the reduction of overall taxes that must be paid.
- College Access Tax Credit – If a taxpayer has contributed to the California Access Tax Credit Fund, they may be able to claim the College Access Tax Credit. The California Access Tax Credit Fund helps low-income college students with their financial aid.
- Nonrefundable Renter’s Credit – Paying rent while living in California may make taxpayers eligible to receive the Nonrefundable Renter’s Credit. If the taxpayer has paid rent in California for more than half of the year on a non-tax-exempt property, earned an income less than $41,641, is filing their taxes as a single person, and claims no dependent, they will be eligible to receive this state tax credit.
- Joint Custody Head of Household – If a parent shares joint custody of a child with another parent and pays for more than half of the child’s living expenses, they are eligible to claim this state tax credit.
- Prior Year Alternative Minimum Tax – Taxpayers can claim the Prior Year Alternative Minimum Tax if they paid an Alternative Minimum Tax credit during the previous year and then made adjustments.
- Child Adoption Costs Credit – Adopting a child may make taxpayers eligible for the Child Adoption Costs Credit, which will allow them to claim 50% of the cost adopting the child and includes reimbursement for adoption fees, the child’s medical costs, and the cost of traveling to adopt the child. Only U.S. citizens and legal residents are eligible for this credit.
- Senior Head of Household Credit – This credit can be claimed by people that are older than 65 years of age, previously qualified for head of household, experienced the death of their qualifying person within the past two years, and make an income that is less than $76,082.
- Dependent Parents Credit – The Dependent Parents Credit can be claimed by taxpayers that cared for their elderly parent during this tax year. There are requirements regarding having a spouse that must be met for taxpayers to qualify for this tax credit.
- Other State Tax Credit – Taxpayers that paid taxes to both California and another state are able to claim this credit to offset the cost.
Accountant for State Tax Credits in Sacramento, CA
You can contribute to your personal financial health and the health of your business by being diligent about claiming all of the state tax credits that you qualify for. The Sacramento state tax credit accountants from Cook CPA Group are available to help individual taxpayers and businesses with every step in the process of planning, preparing, and paying taxes, including the claiming of state tax credits. Contact Cook CPA Group today to learn more about how you can claim state tax credits today.