Current:Home > MyState taxes: How to save with credits on state returns -Thrive Financial Network
State taxes: How to save with credits on state returns
View
Date:2025-04-12 11:29:41
Tax season is almost over and those who have yet to file may be looking for as many credits as possible to get cash back from the Internal Revenue Service.
The average tax refund issued by the IRS as of March 1 is $3,182, a 5.1% increase compared to the similar filing period in 2023. The trend may not hold as refund amounts dropped 13% between March and April in 2023, according to Barron's.
While some filers may focus on the federal half of the assignment, there are credits to be found in state tax codes as well.
Some states have different rules about what is and isn't taxed, especially around Social Security income, but there are opportunities to lower a filer's state tax liability.
Here are some state tax credits that may help you get money back when you file.
California
The state of California offers multiple credits for residents who file returns.
The California Earned Income Tax Credit may provide up to $3,529, while the Young Child Tax Credit and the Foster Youth Tax Credit may provide a $1,117 rebate.
State residents may also claim rebates for living in areas that experienced a disaster declared by the President. If a filer needs to receive copies of a previous tax return due to a disaster they can be sent, for free, by filing a FTB 3516 form.
Colorado
Eligible filers in the state of Colorado can receive an $800 refund per person as a part of the state's Taxpayer's Bill of Rights (TABOR) mechanism. A bill passed into law in 2023 applied the mechanism equally to all qualified individuals, moving it away from the sales tax mechanism for this filing year.
In order to qualify a filer must be:
- At least 18 years old when the tax year began
- Does not have a Colorado income tax liability
- Are not claiming a refund of wage withholding
- Are not otherwise required to file a Colorado return because you have no federal filing requirement
Low income, disabled or older residents may qualify for the rebate by filing a 2023 Property Tax/Rent/Heat (PTC) Rebate Application in lieu of a tax return.
Oregon
Oregon taxpayers may qualify for the state's "kicker" tax credit. The credit, passed into law in 1979, goes into effect when the state's General Fund revenues are more than 2% of what was projected.
- File your 2022 Oregon return before you file your 2023 return.
- Have an Oregon tax liability for 2022.
- File a 2023 Oregon return, even if you don't otherwise have a filing requirement.
Filers can estimate their "kicker" credit by multiplying their 2022 tax liability – before any credits – by 44.28%, according to the state.
Washington
Washington state offers a "Working Families Tax Credit" modeled on the federal Earned Income Tax Credit.
Filers who qualify for the federal credit qualify for the state credit, as well as those who, "filed a federal income tax return for the prior federal tax year using a valid individual taxpayer identification number in lieu of a social security number."
Any family that qualifies for the credit will receive $50 at minimum. The maximum credit a family can receive are:
- 0 children: $315
- 1 child: $625
- 2 children: $940
- 3 or more children: $1,255
veryGood! (75515)
Related
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- UConn, Kansas State among five women's college basketball games to watch this weekend
- Craig Melvin replacing Hoda Kotb as 'Today' show co-anchor with Savannah Guthrie
- Dramatic video shows Phoenix police rescue, pull man from car submerged in pool: Watch
- What to watch: O Jolie night
- Halle Berry surprises crowd in iconic 2002 Elie Saab gown from her historic Oscar win
- Florida State can't afford to fire Mike Norvell -- and can't afford to keep him
- Traveling to Las Vegas? Here Are the Best Black Friday Hotel Deals
- Louvre will undergo expansion and restoration project, Macron says
- Gold is suddenly not so glittery after Trump’s White House victory
Ranking
- Where will Elmo go? HBO moves away from 'Sesame Street'
- Suicides in the US military increased in 2023, continuing a long-term trend
- 'Wanted' posters plastered around University of Rochester target Jewish faculty members
- Quincy Jones' cause of death revealed: Reports
- Senate begins final push to expand Social Security benefits for millions of people
- Dick Van Dyke says he 'fortunately' won't be around for Trump's second presidency
- Up to 20 human skulls found in man's discarded bags, home in New Mexico
- Cruel Intentions' Brooke Lena Johnson Teases the Biggest Differences Between the Show and the 1999 Film
Recommendation
Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
Halle Berry Rocks Sheer Dress She Wore to 2002 Oscars 22 Years Later
5-year-old boy who went missing while parent was napping is found dead near Oregon home, officials say
Will Aaron Rodgers retire? Jets QB tells reporters he plans to play in 2025
What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
Brianna LaPaglia Addresses Zach Bryan's Deafening Silence After Emotional Abuse Allegations
The Fate of Hoda Kotb and Jenna Bush Hager's Today Fourth Hour Revealed
Up to 20 human skulls found in man's discarded bags, home in New Mexico