WHAT IS THE CALIFORNIA EARNED INCOME TAX CREDIT? (CalEITC)

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.

Households earning less than $30,950 may be eligible for CalEITC up to $3,529 for tax year 2023.

Immigrant workers filing state taxes with an Individual Taxpayer Identification Number (ITIN) and current and former foster youth may also be eligible for CalEITC and the Young Child Tax Credit (YCTC). An Earned Income Tax Credit calculator is available online to estimate the tax refund that may be received from CalEITC and other cash-back credits.


 

AM I ELIGIBLE?

The amount of California Earned Income Tax Credit (CalEITC) you may receive depends on your income and family size. CalEITC may provide you with cash back or reduce any tax you owe.

To qualify for CalEITC you must meet all of the following requirements during the tax year:

Married/registered domestic partner (RDP) filing separately filers must meet all of the following requirements:

  • Had a qualifying child who lived with you for more than half of the tax year, and:

    • You lived apart from your spouse/RDP for the last 6 months of the tax year, or

    • You are legally separated by state law under a written separation agreement or a decree of separate maintenance and you did not live in the same household as your spouse/RDP at the end of the tax year


How do I claim my credit?

You must file your state tax return to claim CalEITC. You may receive free tax help through the Volunteer Income Tax Assistance (VITA) program.

Each year, CSET helps thousands of residents prepare and file their income taxes for free through VITA.

VITA is available to individuals and families with a yearly income below $60,000. CalEITC eligibility will be reviewed with every tax return that is prepared.

CSET Senior Program Specialist Miguel Castaneda assists a resident with their tax return during the 2016 tax season..jpg

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.

In 2020, Governor Gavin Newsom expanded CalEITC and added the new Young Child Tax Credit (YCTC) to further assist families facing poverty. Taxpayers who file their tax returns with an ITIN (Individual Taxpayer Identification Number) including undocumented immigrants, are eligible for the CalEITC and the Young Child Tax Credit (YCTC) when filing their taxes.

For tax year 2022 forward, former and current foster youth may be eligible for the Foster Youth Tax Credit (FYTC).