California Middle Class Refund

From the desk of Gama Garcia:

The extension deadline is fast approaching for individuals and Corporations who were not quite ready to file back in April. Please get your documents to us by September 30 so we have enough time to process your tax returns.

. Enjoy :)

Gama Garcia

Important Deadlines

📅 September 30 - Last day to get your personal documents to us

📅 October 18 - Individual and Corporation Extension Deadline

Let's Get Social

The Middle-Class Refund Up To $1050 aka The Gas Tax Rebate

The_Middle_Class_Refund.pdf

The Middle Class Tax Refund is a one-time payment to provide relief to Californians.

If you are eligible, you will automatically receive a payment. Payments are expected to be issued between October 2022 and January 2023.

How will the client receive the refund

Generally, if you filed electronically and received your 2020 tax refund by direct deposit, then you should get your payment the same way. Otherwise, you will receive your payment on a debit card.

You are eligible if you:

• Filed your 2020 tax return by October 15, 2021

• Meet the California adjusted gross income (CA AGI) limits described in the section below

• Were not eligible to be claimed as a dependent in the 2020 tax year

• Were a California resident for six months or more of the 2020 tax year

• Are a California resident on the date the payment is issued

For your CA AGI, go to:

• Line 17 on your 2020 Form 540

• Line 16 on your 2020 Form 540 2EZ

Around the Web

Article appeared:

https://wpde.com/news/local/horry-county-convenience-store-owner-underreported-taxable-sales-for-years

HORRY COUNTY, S.C. (WPDE) — An Horry County convenience store owner is accused of failing to report taxable sales for years, according to the South Carolina Department of Revenue.

Prem Kumar Akkineni, 36, of Myrtle Beach, was arrested Friday and charged with four counts of tax evasion, according to the SCDOR. Akkineni operated Akkineni LLC, doing business as Short Stop.

Akkineni allegedly failed to report taxable sales of more than $2 million for tax years 2018 to 2021, according to SCDOR. He’s accused of evading at least $166,425 in state sales tax.

For tax year 2018, Akkineni reported taxable sales at $568,103 but sales were at least $1,126,175, according to arrest warrants. For 2019, taxable income was reported as $599,704 but sales were at least $1,261,263.

In tax year 2020, he reported taxable income as $600,550 but sales were at least $1,189,658, according to the warrants. For 2021, sales were reported as $1,033,539 but were really at least $1,305,105.

Akkineni is out of jail on bond, according to online records.

If convicted, he faces up to five years in prison and/or a fine of $10,000 plus prosecution costs for each count, according to SCDOR.

Personal Tax Tip

New and Improved Energy Tax Credits for Homeowners

The president signed the Inflation Reduction Act into law on August 16, 2022. It contains some valuable tax credits for homeowners.

When it comes to taxes, nothing is better than a tax credit since it is a dollar-for-dollar reduction in the taxes you must pay (unlike a tax deduction that only reduces your taxable income). In other words, a $1,000 credit saves you $1,000 in taxes.

The new law extends and expands three tax credits intended to encourage homeowners to make their homes more energy efficient and to facilitate the use of electric vehicles.

Energy Efficient Home Improvement Credit

The new law creates the 2023 Energy Efficient Home Improvement Credit that helps homeowners pay for various types of energy efficiency improvements, including

• exterior windows, skylights, and doors;

• home insulation;

• heat pumps, water heaters, central air conditioners, furnaces, and hot water boilers;

• biomass stoves and boilers; and

• electric panel upgrades.

The old credit contained a tiny $500 lifetime cap. Lifetime caps are gone beginning in 2023.

Instead, the new law gives you a $1,200 annual cap along with specific caps on some improvements. But overall, you can perform many energy efficiency projects over several years and collect a credit each year.

Residential Clean Energy Credit

Most taxpayers earn the Residential Clean Energy Credit by installing solar. Two good things here. First, the new law extends the credit through 2034. Second, the new law increases the credit from 26 percent to 30 percent for eligible property placed in service in 2022 through 2032.

There is no annual or lifetime cap on this credit. The average solar project cost on a home is over $20,000, so this credit can save you more than $6,000.

You can also apply this credit to the cost of storage batteries, solar water heaters, geothermal heat pumps, small residential wind turbines, and residential fuel cells.

Home Electric Vehicle Charger Credit

The new law extends through 2032 the tax credit for installing a home electric charger. The amount of credit remains the same: a non-refundable credit equal to 30 percent of the cost of a home charger, capped at $1,000. But starting in 2023, the credit will be available only for homeowners who live in low-income or rural areas.

Client Portal

Our new client portal allows you to upload documents and IRS notices. You can also start uploading documents for 2022. Keep all your documents in one safe place.

If you haven't yet created your account in our new client portal, please do so here: