S. E. Williams
More and more Californians are learning about and filing for California’s new Earned Income Tax Credit, the CalEITC. The CalEITC is a cash back tax credit designed to put more money into the pockets of California’s working families and individuals, available for the first time this year for the 2015 tax year.
California officials are hopeful the new tax credit will boost the income for as many as 600,000 eligible families. You may be eligible for the CalEITC if you have earned income 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 visit caleitc4me. org/know-it/.
The CalEITC is administered by the Franchise Tax Board (FTB). To help administer the CaEITC, the FTB has created five new notices to make it easier for filers to respond to requests for additional information. If you receive one of these notices, read the instructions carefully. These notices are to make sure nothing stands in the way of eligible Californians receiving the refunds they deserve or let you know you were not eligible. Each notice will have specific instructions and information created to help you respond with the correct information.
Notice FTB 4502, Additional Documentation Required—Refund Pending is a notice the state sends to let you know it does not have enough information to approve the claimed CalEITC prior to processing the tax return and issuing a refund. The notice will give specific instructions on the type(s) of supporting documentation you must submit to validate the claim.
Notice FTB 4513, Earned Income Tax Credit—Acceptance Letter is a notice sent by the state when a taxpayer submits the required supporting documentation to substantiate their claimed CalEITC and the state accepts the documentation. This notice serves as confirmation the state has accepted the claimed CalEITC for the tax year on the notice.
Notice FTB 4514, Additional Documentation Required—Refund Issued is sent by the state when it determines it does not have enough information to approve the claimed CalEITC and the tax return has already been process and a refund issued. This notice provides specific instructions on the type(s) of supporting documentation the taxpayer must submit to validate the claimed CalEITC.
Notice FTB 4515, Earned Income Tax Credit—Adjustment Made is sent by the state when either it did not receive the required supporting documentation; or, it received insufficient documentation to support the claimed CalEITC. The notice will indicate the state adjusted the claimed CalEITC and will also provide the specific reason(s) for the adjustment. In addition, will provide the taxpayer with options should they disagree with the state’s decision.
Notice FTB 4516, Earned Income Tax Credit—Denial is sent by the state when a taxpayer files a Formal Claim for Refund that the state denied. The notice will include information regarding how to file an appeal with the Board of Equalization.
Be sure to act on these notices quickly so your CalEITC refund does not get delayed. For more information regarding these notices, visit https://www.ftb.ca.gov/individuals/faq/ net/900.shtml and click on ‘CalEITC Notices You Might Receive’. If you receive a notice from the FTB and you have questions, do not hesitate to call (800) 852-5711 for more information.
This year, California has joined twenty-four other states and the District of Columbia in offering its own Earned Income Tax Credit to supplement the credit offered at the federal level. For more information on CalEITC visit caleitc4me.org.