California Tax Credits

The California Earned Income Tax Credit (CalEITC) is a state-level tax credit that helps low-income workers and families in California. It supplements the federal Earned Income Tax Credit (EITC) by providing financial support based on income and family size. CalEITC can either reduce your tax owed or provide a refund and it is administered by the California Franchise Tax Board. Eligible individuals can claim it when filing their state tax returns.

• You’re at least 18 years old or have a qualifying child
• Have a minimum earned income of $1.00 and a maximum of $30,000
• Possess a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, and any qualifying children.
• Reside in California for more than half of the filing year.
• Cannot be claimed as a qualifying child by another taxpayer.
• Cannot be claimed as a dependent by another taxpayer, unless you have a qualifying child.

NEXT STEPS AND RESOURCES:

• Use the EITC Calculator to estimate your credit
• To claim download, complete, and include FORM 3414 for the applicable tax year along with your California tax return
• You can file your tax return and claim CalEITC using CalFile for free
• Obtain support for filing your taxes with MyFreeTaxes, a service sponsored by United Way that assists individuals in preparing and submitting their federal and state tax returns at no cost.

The Young Child Tax Credit (YCTC) provides up to $1,083 per eligible tax return for California families with a qualifying child under 6-years old at the end of the tax year. To qualify, families must have earned an income of $30,000 or less and meet CalEITC requirements– with one exception- beginning with tax year 2022, individuals may qualify for YCTC with a total earned income of zero dollars or less if the following conditions are met:

• Combined earnings from wages, salaries, tips, and other forms of employee compensation (regardless of whether they are subject to California withholding) do not surpass $32,490.
• Overall net loss is below $32,490.
• Satisfy the requirements for both CalEITC and YCTC.

Note: Tax filers with an Individual Taxpayer Identification Number (ITIN) may now qualify for the California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit (YCTC).