Head over to to plug your information into the tax calculator for an estimate of how much you may get back and/or to file your taxes safely and for free. In 2015, Governor Jerry Brown and the state legislature created the first-ever California Earned Income Tax Credit (CalEITC). California joined 24 other states and the District of Columbia in adopting a state EITC to supplement the federal EITC.
CalEITC eligible families can receive up to $3,417 depending on income and qualifying children. Those who qualified for the CalEITC may also receive up to $1,083 more if they have a child under the age of 6 by also claiming the Young Child Tax Credit. Many people who are eligible to receive the CalEITC do not to file an income tax return because they don’t make more than the $12,950 but if they don’t file, they can’t receive the credit. These credits reduce the amount of state income tax California families and individuals owe based on how much they earn from work and how many qualifying children they live with. Since these credits are refundable, people who qualify for a credit that exceeds the amount of income tax they owe can receive the balance as a tax refund. This means that families and individuals who do not owe any state income tax can get the full credit that they qualify for as a refund.
The CalEITC and Young Child Tax Credit
An IRS-certified tax preparer volunteer can work with you to file your 2022 Federal and California state income tax returns and claim these tax credits. California storm victims now have additional time to file various federal individual and business tax returns. You could get thousands in tax credits and qualify for money to help cover the costs of care for a qualifying child or dependent— which could mean money in your pocket — even if you don’t owe any taxes. Learn more about the Child and Dependent Care Credit at the CA state and federal level. CalEITC is a cash back tax credit that puts money back into the pockets of California’s working families and individuals. The amount of tax credits and cash back refund depends on household income and family size.
The California Earned Income Tax Credit (CalEITC) is a cash back tax credit that puts money back into the pockets of California workers who earn up to $30,000 per year. In its first year, CalEITC boosted the income of nearly 400,000 families, who received almost $200 million back. Thanks to expansions championed by Assemblymember Phil Ting (D-San Francisco), more than 2 million people claimed the credit last year, totaling close to $400 million.
Based on the information you provided, you may not qualify for tax credits but if you made less than $60k in
For instance, someone who earned only $200 in 2022 and has three children would receive $67 in earned income credit, while someone who made about $9,000 with three children would receive $3,417. Filing your state tax return is required to claim both the CalEITC and the YCTC. Tax filers with an ITIN – Individual Tax Identification Number – including undocumented workers, may now https://turbo-tax.org/california-earned-income-tax-credit-and-young/ qualify for the CalEITC and the Young Child Tax Credit (YCTC). If you are eligible for an EITC, you can get free tax preparation help through a Volunteer Income Tax Assistance (VITA) Center. If you are self-employed, have all your receipts and a log of expenses ready for the tax preparer. To find a local VITA Center, check the Franchise Tax Board or the IRS VITA Site List.
With one qualifying child, your AGI can be up to $46,560 ($53,120 for a couple). With two or more qualifying children, you can have an AGI of up to $52,918 ($59,478 for a couple). And with three or more qualifying children, you can have an AGI of up to $56,838 ($63,698 for a couple). If you are married and filing jointly, at least one spouse must receive earned income to be eligible for an EITC. Use our calculator to estimate how much cash back you may qualify to claim when filing your 2022 tax return through the California EITC, Federal EITC and Young Child Tax Credit. If you’d prefer to file your return yourself, United Ways of California has a great online tax preparation website you can use.
California’s parenting website
This resource can be shared with community partners or familes to understand how to find free tax preparation. A single PowerPoint slide you can use and/or adapt at the start or end of other presentations, to briefly share CalEITC/YCTC information with commissions, community partners, or families. A short set of bullets to assist trusted messengers who interact directly with parents/guardians, to explain CalEITC and encourage filing. This information was provided by the First 5 Association of California and the California Franchise Tax Board. The following resources are offered by off-campus programs that are not affiliated nor endorsed by CSULB.
Your adjusted gross income (AGI) includes all earned income before deductions for taxes, health care or other expenses, minus certain business, education-related, and other expenses. While filling out your annual tax return (IRS Form 1040), you will be asked a series of questions that will allow you to determine what your AGI https://turbo-tax.org/ is. Ensuring that eligible Californians receive their tax credits remains a priority for policymakers, who continue to explore additional expansions and modifications. The next modification—slated to take effect in or after 2024—will prevent credits from being intercepted to pay off debts other than child and family support.