Stimulus Check Update: Residents in One State Qualify for $12,000 Rebate

Residents in California could earn up to $12,000 if they qualify for a combination of state and federal rebates, according to the state's tax board.

Although federal stimulus check payments ended years ago, the California Franchise Tax Board offers residents several options to earn some extra cash after filing their taxes.

Up to $12,076 is available to those who qualify for the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit (YCTC) and the Federal Earned Income Tax Credit (EITC). For the CalEITC, low-income residents can see a payment worth up to $3,529 for the 2023 tax year.

To qualify, residents need to make $30,950 or less yearly. Those looking to apply should use the 2023 FTB 3514 form.

Even if you make more than that amount, you could still stand to benefit. Those earning less than $63,398 may apply for the EITC, which could boost payments even more.

Meanwhile, the YCTC is another option to raise your rebate amount. This tax credit offers up to $1,117 per tax return.

The tax credit's criteria is for California families with an earned income of $30,931 or less with a qualifying child under six years old. You also must be eligible for the CalEITC.

There's an additional Foster Youth Tax Credit (FYTC) offering $1,117 per person or $2,234 per filing couple. The FYTC states you must be a current or former foster youth who received care at age 13 or older and were placed in California's foster care system to qualify.

Newsweek reached out to the California Department of Tax and Fee Administration via email for comment.

Everyone who files a state and federal tax return with the Internal Revenue Service (IRS) is able to earn the EITC. Residents must pay all owed taxes by the April 15 deadline to secure the rebates.

Altogether, the rebates can amount to an extra $12,076 in your pockets.

"To unlock these credits, and thereby the one-time tax rebate, Californians must diligently file both their state and federal tax returns," Zack Hellman, owner of Tax Prep Tech, told Newsweek on Friday. "The importance of settling any owed taxes by the April 15 deadline cannot be overstated to avoid penalties."

He added: "These rebates, tailored to California's specific needs, provide substantial relief to residents. In an era where federal stimulus checks have ceased, such state-specific initiatives become even more crucial."

While the California Franchise Tax Board began accepting tax returns on January 2, the IRS will start accepting returns on January 29.

All returns are due April 15, with California offering a state extension for October 15.

Refunds should be processed within 21 days if residents file electronically. For paper returns, refunds will be issued within three months.

"These credits can seriously increase their household income! We're talking about scoring up to $12,076 extra," Michael Ryan, a financial expert who runs michaelryanmoney.com, told Newsweek on Friday. "That's huge for many families. "It can help ease money struggles, which I know many are facing nowadays. Of course it's not a complete solution, but every bit helps."

Other Rebates Available

Several other tax rebates are available to Americans.

In Pennsylvania, $1,000 is available courtesy of a property tax and rent rebate program.

This year, more people qualify due to a heightened income cap. Both renters and homeowners will earn the cash if they make $45,000 a year or less.

Meanwhile, Vermont's Property Tax Credit also helps homeowners pay their property taxes. Residents are eligible based on their 2023/2024 property taxes as long as their property qualifies as a homestead and they meet the other criteria.

The amount earned is decided based on several factors, but the maximum credit is $5,600 for the education property tax portion and $2,400 for the municipal property tax portion.

Alabaman couples are also seeing an extra $300 if they filed a state income tax return for 2021 on or before October 17, 2022. The state spent $393 million on the tax refunds due to a $2.8 billion surplus in the Education Trust Fund. State officials said each payment is meant to aid residents and offset grocery taxes paid throughout the year.