The California Franchise Tax Board (FTB) has officially launched the 2025 tax season, encouraging residents to file their taxes early. Malia M. Cohen, the State Controller and Chair of the FTB, stresses the importance of early tax submissions to take full advantage of available tax credits. These credits are designed to provide substantial financial aid to taxpayers and their families, easing their economic burdens. Cohen also encourages the use of FTB’s digital services, which facilitate faster processing of refunds through e-filing and direct deposit options, enhancing the overall efficiency of receiving tax refunds.
Secure and Swift E-filing Options
To support efficient tax filing, the FTB, in conjunction with the IRS, offers free e-filing services through IRS Direct File and CalFile. This system allows most Californians to file both their state and federal taxes online swiftly and without any fees. E-filing not only simplifies the tax filing process but also ensures greater accuracy and security. Californians can start with Direct File for their federal taxes and then seamlessly transition to CalFile for their state taxes, streamlining the entire process. The IRS’s Direct File website provides detailed eligibility information and step-by-step guidance.
Access Convenient Online Tax Services
Recognizing the need for efficient tax management, the FTB has developed robust online tools that are accessible around the clock. These tools proved invaluable last year, with millions of taxpayers utilizing them to manage their tax-related tasks without the need to contact FTB directly. Services available online include checking the status of refunds, making payments, identifying necessary tax forms, and even estimating wait times for processing. These digital options significantly reduce the need for phone-based inquiries, which can be time-consuming and less efficient.
Explore Available Cash-Back Tax Credits
For the tax year 2024, Californians who earn below $31,950 may qualify for the California Earned Income Tax Credit (CalEITC), which offers a significant cash-back or reduction in tax liability. Additionally, families with children under the age of six might be eligible for the Young Child Tax Credit (YCTC), potentially receiving up to $1,154. Moreover, those earning under $66,819 might also qualify for the federal Earned Income Tax Credit (EITC), with possible benefits totaling up to $12,628 when combined with state credits. These tax credits are pivotal in supporting low to moderate-income families and can be claimed by filing a state tax return.
Comprehensive Payment Options and Disaster Relief Assistance
The FTB offers multiple payment options to cater to the diverse needs of Californians. These include direct deposits from bank accounts, credit card payments (note: fees may apply), and structured payment plans for those who qualify. For individuals affected by disasters officially declared by the President or Governor, the FTB provides additional support, such as deducting disaster-related losses and providing free tax return copies if original documents were damaged or lost. Detailed disaster-related information and forms are accessible on FTB’s disaster loss webpage.
Additional Recommendations and Security Measures
Taxpayers should remain vigilant against potential scams where fraudsters impersonate tax authorities to steal money or personal information. It’s crucial to use verified communication methods and report any suspicious activities to the official FTB or IRS contact points. For those seeking additional help with their taxes, California offers free tax assistance through the Volunteer Income Tax Assistance (VITA) program, with locations listed on the FTB’s website. This program and other resources ensure that taxpayers have the support they need to navigate the tax season securely and successfully.
