CALIFORNIA.- President Biden’s signature on the economic stimulus law It is the beginning of the financial recovery of thousands of Californians, who look forward to both the third stimulus check such as possible refunds for tax credits, both state and federal.
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Catalina Martínez from the California Tax Board clarifies that “The stimulus is only one time, for this year, and that state and federal credits are also separated.
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The so-called American Rescue Plan includes stimulus checks of $ 1,400 per person, extension of the tax credit per child and extension of the insurance from September to September of this year, among other amounts that will be used to combat the pandemic.
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Carlos Baradello, an economist from California, explains that families could receive up to $ 3,000 per child between the ages of 6 and 17, and $ 3,600 for each child under the age of 6. This is an increase in the benefit, since the previous law set a maximum of $ 2,000 in credit.
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The new legislation extended the eligibility of minors by one year, since previously it was up to 16 years. The families that qualify for the federal child credit are:
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-Families, whose children have a valid social card, and at least the parents have declared their taxes last year.
-Single-parent families with maximum annual income of $ 75,000
-Families with joint return earning up to $ 150,000
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At least some 27 million children currently living in poverty in the United States could benefit from this tax credit, and three out of four families will receive an increased refund under the new stimulus package, according to data from the Tax Policy Center.
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Credits and Incentives in California
The economic recovery package signed by President Biden has federal scope, but a few weeks ago the California Legislature approved the so-called Golden State Stimulus, which consists of a single and direct payment of $ 600 to Californians what win less than 30 thousand annually, and are eligible for the California Earned Income Credit.
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State credits have other amounts and different income limits, relative to the same tax credit but at the state level. Those taxpayers who declare, using either an ITIN or an SSN, are eligible for the so-called CAL EITC, as long as they declare income of less than $ 30,000. At the federal level, people with ITINs do not qualify for this credit.
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The Child Credit in California allows you to choose up to $ 1,000 for each eligible child under age 6.
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How much money will I receive from the new economic stimulus package? This tool will help you calculate it
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