California is again offering an Earned Income Tax Credit (EITC) for working low-income families and individuals. This year, the eligibility thresholds were lowered so that more people could qualify.
If you qualify for the CA EITC and the amount of the credit is greater than the tax you owe, you will receive a refund.
Qualifications
You must file a state tax return, even if you do not owe any tax or are not otherwise required to file.
You must have earned income from W-2 wages, salaries, tips, or other employee compensation subject to California withholding. (For the CA EITC, earned income does not include income from self-employment.)
You, your spouse, and any qualifying children must each have a social security number issued by the Social Security Administration that is valid for employment.
You must file using the single, married/registered domestic partner (RDP) filing jointly, or head of household filing status. The "married/RDP filing separately" status may not be used.
You must either:
- Meet the rules for those without a qualifying child; or
- Have an individual that meets all of the qualifying child rules for you or your spouse if you file a joint return.
Your principal residence must be in California for more than half the tax year.
Both your adjusted gross income and earned income must be no more than 30,000.
The tax credit you'd receive is defined as follows:
- No qualifying children $240
- One qualifying child $1,605
- Two qualifying children $2,651
- Three or more qualifying children $2982
Free help is also available at free tax return prep sites around the state, beginning in late January and running through Tax Day in April. Find a free tax prep location near you at CalEITC4Me.org.