Avoid These 3 Mistakes When Filing Your California Taxes
Wednesday, 20 March 2024, 09:30
Avoid These 3 Mistakes When Filing Your California Taxes
Want to save money on taxes in California? Watch out for these big mistakes when filing taxes in the Golden State.
Mistake No. 1: Assuming you'll get the same federal deductions
- California has a lower standard deduction: Married couples filing jointly face a significant disparity in standard deduction amounts between federal and California taxes.
- California doesn't allow deductions for health savings accounts (HSAs): Unlike federal taxes, contributions to HSAs are not deductible on California tax returns.
- California doesn't allow deductions of state, local, or property taxes: Homeowners in high-tax states may miss out on this popular federal tax break in California.
- California has some special deductions: Certain deductions offered by California exceed federal benefits in specific categories.
Mistake No. 2: Trying to get tax credits that you don't qualify for
- Young Child Tax Credit: Restricted by income levels, this credit requires a qualifying child under age 6 and specific earned income thresholds.
- Nonrefundable renter's credit: Income limits apply for single filers and couples interested in this credit.
- Senior head of household credit: Available for older adults with specific income requirements.
Mistake No. 3: Failing to pay taxes owed by April 15, 2024
California extension vs. payment deadline: While California offers a filing extension, it's crucial to pay owed taxes on time to avoid penalties and fees.
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.