Mistakes to Avoid When Filing California Taxes for 2023
Mistakes to Avoid When Filing California Taxes for 2023
Want to save money on taxes in California? Watch out for these big mistakes when filing taxes in the Golden State.
Mistake No. 1: Differences in Federal and California Deductions
California has a lower standard deduction and doesn't allow deductions for health savings accounts or state, local, or property taxes, but offers special deductions in home mortgage interest and moving expenses, in contrast to federal regulations.
Mistake No. 2: Trying to get tax credits that you don't qualify for
California offers tax credits with income limits, such as the Young Child Tax Credit, Nonrefundable renter's credit, and Senior head of household credit, where eligibility depends on specific income thresholds.
Mistake No. 3: Missing the Tax Payment Deadline
California provides an extended deadline for filing taxes until October 15, 2024, but if taxes are owed, payment must be made by April 15, 2024, to avoid penalties.
Filing taxes accurately and on time is crucial to maximize savings and avoid paying unnecessary penalties, ensure you understand the differences between federal and California tax regulations to make the most of available deductions and credits.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.