The California Earned Income Tax Credit

  • Printer-friendly version

The California Earned Income Tax Credit (CalEITC) is now available for more families this year. This cash-back credit is designed to put money in the pockets of low-income working families and individuals. Last year, the Cal EITC put $346 Million directly into the hands of 1.4 million working Californians. Claiming this credit is easy. Eligible taxpayers just need to file a state tax return.

This tax season, the CalEITC will be available to approximately 1.7 million eligible families. You may be eligible and don’t even know it.

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:
    • $15,008 if there are no qualifying children
    • $22,322 if there is one qualifying child.
    • $22,309 if there are two or more qualifying children.
    • $22,302 if there are three or more qualifying children.

More information and assistance can be found at CalEITC4Me.org.

If you filed your 2015 and 2016 state returns and think you may qualify for CalEITC, you may amend your return. Consider contacting your professional tax preparer, or follow these instructions (2015, 2016) to fill out a Form 540X (2015, 2016) and Form 3514 (2015, 2016) to claim the credit.