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CalEITC—How to Maximize Your Tax Return by Letting Your Money Work for You

by admin on 1st-April-2016

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S. E. Williams

Individuals and families work hard for their money but forget their money also works for them. You do not have to be wealthy to grow wealth.

This year, California’s new Earned Income Tax Credit, the CalEITC, presents many Californians with an unexpected tax credit that could result in a tax refund. Recipients may choose to set aside and begin building toward future options such as a college account for a child, working toward a down payment on a home or putting money aside for retirement.

This week, Financial Services Professional- Registered Representative Nicolas G. Perez, with NYLIFE Securities LLC (member FIMRA/ SIPC) shared some professional insight regarding this important issue.

Perez has served in investments and finance for nearly fifteen years and has been with New York Life almost five years. New York life recently celebrated its 170-year anniversary. As Perez put into context, “New York Life was already sixteen years old by the time the Civil War began.”

When asked about options for individuals and families with low incomes who want to save for their child’s college, a down payment for a home or for their retirement, Perez responded, “Working with limited income families is one of my specialties for two main reasons.” He explained, “These families [or individuals] need the most access to information about their various options but unfortunately are often the least served as it pertains to planning for the future. Second,” he continued, “These families [or individuals] can be affected significantly more if one of the incomes in the family is lost, so protective planning is crucial when it comes to planning with limited incomes.”

“For college funding,” Perez further clarified, “We can put together plans that begin with as little as $25. My solutions always incorporate an educational component, so I bring tools to families to help them find the free money that is available while tailoring a solution to their specific needs and limitations.” According to Perez, “The biggest factor in planning is not the actual money you put in, its capitalizing and maximizing the time you have to reach a goal.”

Most people do not believe they can make their money grow and work for them because they only have a small amount to start with. Perez was asked how he encourages people to feel differently. “If you go by the old adage that says you need a large nest egg or the T.V. financial gurus who generically say that you need $2,000,000 in retirement to actually retire, that can seem daunting. But, the concept of taking action early and leveraging time isn’t difficult to do with the right help.”

Because investment options are so very personalized and he suggests people should set an appointment with a professional that can advise on the options that taxpayers may have.

“My suggestion is for people talk to their friends and people they trust in their community and get recommendations for an insurance professional.” He added, “Study product illustrations carefully, and ask questions when necessary. You’ll want to fully understand the products that are proposed to you. If you’re uncomfortable with a scenario presented to you, get a second opinion.”

New York Life agents like Perez who are professionally trained and experienced can help you analyze your needs and recommend appropriate solutions through insurance and financial products and concepts. As Perez stressed, “When you have all the facts, then you can make an intelligent decision on what’s best for you and your family.”

Perez illustrated, “There is no one, generic path towards meeting your financial goals, every person has their own needs and desires for their future. My job is to help show them how to get there in the most tax efficient manner and with as many guaranteed results as possible.”

The first step is to file your taxes before the April 18, 2016 deadline. CalEITC4ME works to make the filing process as easy as possible for Californians to claim the state’s first ever Earned Income Tax Credit by connecting them to free tax preparation services. For example, if you are eligible for the Earned Income Tax Credit or made $54,000 or less in 2015, you can get your tax return filed for free. Fore more on how to file for free visit caleitc4me.org/get-it/.

You may be eligible for the CalEITC if you have earned income in 2015 within certain limits (less than $6,580 if you have no dependents and up to $13,870 with two or more dependents); you, your spouse and any qualifying children each have a social security number; you do not use the ‘married/Registered Domestic Partners (RDP) filing separate’ filing status; and, you lived in California for more than half the tax year. For more information regarding eligibility requirements for the CalEITC and to learn how to file your income tax return for free visit caleitc4me.org.

You may be eligible for the CalEITC if: 

• Your earned income in 2015 is less than $6,580 if you have no dependents and up to $13,870 with two or more dependents

• You, your spouse and any qualifying children each have a social security number

• You do not use the ‘married/Registered Domestic Partners (RDP) filing separate’ filing status

• You lived in California for more than half the tax year

For more information regarding eligibility requirements for the CalEITC and to learn how to file your income tax return for free visit caleitc4me.org.

Category: Feature Stories.
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