California is now offering an Earned Income Tax Credit (EITC) for working low-income families and individuals. In addition to the federal EITC, the new state Earned Income Tax Credit will put more money in the pockets of those who need it most.
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.
The state Earned Income Tax Credit is available to California households with adjusted gross incomes of less than $6,580 if there are no qualifying children, less than $9,880 if there is one qualifying child or less than $13,870 if there are two or more qualifying children. See below for more 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 (defined above) must be no more than: $6,580 if there are no qualifying children.
- $9,880 if there is one qualifying child.
- $13,870 if there are two or more qualifying children.
- Your investment income, such as interest, dividends, royalties, and capital gains cannot exceed $3,400 for the entire tax year.