What is FTB reconciliation?

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FTB reconciliation refers to an accounting process wherein the filed tax income a particular individual or family is checked and compared with the actual benefits received through the FTB or the Family Tax Benefit. This particular benefit payment is given to eligible individuals and families who have dependent children under their care. A basic requirement to get this particular benefit from the government is the filing and submission of individual or family income. If a family for example is considered eligible, they will receive regular payments from the government in the form of their FTB or Family Tax Benefit. With income taxes filed later in the year or the succeeding year for example, eligibility and benefit records may only be reconciled when these papers are already available. This period of checking is called the FTB reconciliation and the government will basically determine if a particular family or individual was underpaid or overpaid. Overpayment is typically redirected to offset the FTB or child care benefits. Underpayments after the FTB reconciliation meanwhile simply means that the family involved will get additional payments along with the supplements involved in FTB.

In most cases, families and individuals may only get benefits from the government through the FTB if they are actually caring for at least 1 child who is 16 years of age or below. Those who are aged 17 to 19 may still get some benefit but there additional requirements in terms of school load and exemptions. Another big criterion to get supplements from the Family Tax Benefit is the income test. Specific income is determined to help those who are truly in need of government assistance. There are also residency requirements and parents of children must also spend at least 1/3 of their time to the dependent child. Aside from actual parents, guardians, caregivers, foster parents, and grandparents may also file to get the Family Tax Benefit.

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