Your Villa Magazine - Moreno Valley - Perris - February - March 2023

IRA SAVINGS 2022 Child Tax Credit The American Rescue Plan no longer applies. The child tax credit has reverted to $2,000 per child and the maximum age limit is now 16 years old. What is the Earned Income Tax Credit? The EITC is a tax credit intended to reduce or eliminate the tax paid by low and moderate-income wage earners. The EITC doesn’t just cut the amount of tax you owe -- it could score you a refund, and in some cases, a refund that’s more than what you actually paid in taxes. Don’t miss out! CALIFORNIA Earned Income Tax Credit 2022 Earned Income Tax Credit Number of Children 0 1 2 3 or more Maximum Credit $ 560 $3,733 $6,164 $6,935 Maximum Earnings Single Filers $16,480 $42,492 $49,399 $53,057 Maximum Earnings Married Filers $22,610 $49,622 $55,529 $59,187 California o ers its own Earned Income Tax Credit. is credit is o ered in addition to the existing federal EITC. e CA EITC is “refundable,” meaning that you will receive a refund if the amount of the credit is greater than the tax you owe. How much can I get? The chart below shows the maximum EITC available for the 2022 tax year, plus the max you can earn before losing the benefit altogether. Investment Income must be less than $10,300. Why so many come to Tax Comp • Open year round to help you not just today but also tomorrow • Experienced, Registered, and Bonded Tax Professionals • Conveniently located near the Moreno Valley Mall • Great Prices! Affordable and Reasonable • FREE! Electronic Filing/Direct Deposit • A+ Rating from Better Business Bureau • Lowest Price for Bank Products • Less that 1% Rate of IRS Audits • Extended Tax Season Hours • Serving Moreno Valley since 1984. Mark Kamio RTRP, with wife Katrina, daughter, Grace & son, Nehemiah C HILD & D EPENDENT C ARE T AX C REDIT You may qualify for up to $6,935 of Earned Income Credit! You can claim this credit if you spend money for the care of children younger than 12 so that you can work or look for work. You must have earned income (that’s earnings from a job, not investments) to qualify for the credit, and if you’re married, both you and your spouse must have a job or be a full-time student. The cost of day care, preschool, before-and after-school care, day camp, or a nanny or other baby- sitter can count toward the credit. How much is the credit worth? That depends on the number of children, the cost of care, and your income. You can count up to $3,000 in child-care expenses for one child, or up to $6,000 for two or more children. The credit is a percentage of the amount spent on child care, and that percentage gradually decreases as income increases. Families that earn less than $15,000 can claim a credit for 35% of qualifying expenses; families that earn more than $43,000 get the smallest credit: 20% on eligible costs. It isn’t Rocket Science ...but it is genius! BENEFITS OF AN IRA • Defer taxes on your earnings so that you can potentially accumulate more for retirement. • Invest annually up to $6,000, or $7,000 for age 50 or older. • Supplement your 401(k) retirement plan savings TAX COMP | 23025 ATLANTIC CIRCLE, SUITE D, MORENO VALLEY, CA 92553 | www.TaxComp.net | 951.486.9862 | admin@taxcomp. net | 17