By Town Crier Staff Report

With tax day come and gone, news of a tax break for California teachers comes as a relief. Kathleen Connell, state controller and chairwoman of the Franchise Board, announced the new Teacher Retention Tax Credit last month.

Beginning this year, both public and private K-12 teachers can receive a tax credit up to $1,500, depending on experience and wages earned.

The Teacher Retention Tax Credit is a nonrefundable credit that may not be more than 50 percent of the taxes paid, from income earned as a teacher.

According to a press release by the Franchise Tax Board:

For teachers with at least four years’ experience but less than six, credit can be up to $250.

For teachers with at least six years’ experience but less than 11, credit can be up to $500.

For teachers with at least 11 years’ experience but less than 20, credit can be up to 1,000.

For teachers with more than 20 years’ experience, credit can be up to $1,500.

Eligible teachers must have a preliminary or professional teaching credential. Years of teaching applied to the credit can include years taught in other states, if a teaching credential was issued from that state.

Taxpayers must complete the Teacher Retention Credit, Form 3505 and claim the credit on Form 540 or Form 540 NR. The credit may not be claimed on Form 540A or Form 540 EZ.

For more information about the tax credit, or to download forms, visit the Franchise Tax Board Web site at www.ftb.ca.gov.

For further assistance, call the Franchise Tax Board at (800) 852-5711.