Tax season is wrapping up, the deadline of Monday, April 15th is fast approaching! There are two important tax credits that all California working families should be aware of: California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit. These credits, in addition to the federal (EITC), can actually give eligible families significant dollars back when they file their tax return.
To simplify these credits, we’ve provided answers to some of the most asked questions. We’ve also provided recommended websites with free tax filing options. If you’re interested in exploring our other resources geared towards families and educators visit our resources page.
What is the California Earned Income Tax Credit?
The CalEITC is a credit that refunds or reduces the taxes owed by those 18 and up who earned an income within a specific range in 2023. The Young Child Tax Credit is for folks who qualify for the CalEITC and have a child under the age of 6.
Qualifications for the California Earned Income Tax Credit and Young Child Tax Credit?
To qualify as a CalEITC recipient, you must meet the following eligibility requirements:
- Earned income of at least $1 and not more than $30,000
- Lived in California for at least half of the filing year
- File your taxes with an Individual Tax Identification Number (ITIN)
- Have a child under 6 for the Young Child Tax Credit
- Important note: The child must be the filer’s child or step-child, have lived in the same residence for 6 months, and cannot be claimed as anyone else’s dependent.
Even if your employment status changed, you may still be eligible for cash-back credits!
What is an ITIN?
An ITIN is a number issued by the IRS so people working in the U.S. can file a federal tax return, or Social Security Number (SSN). Families can qualify for these tax credits regardless of immigration status. When you file, your information is protected. The IRS cannot share your information or immigration status with other agencies.
What documents do I need when filing for the credits?
Proof of income may be shown through W-2 wages, self-employment, salaries or tips.
The following documents do not qualify as proof of income: social security, unemployment benefits, alimony or child support, interest and dividends, any pay received as an inmate in a penal institution.
This information was provided by the First 5 Association of California and the California Franchise Tax Board.
Need more information about the California Earned Income Tax Credit?
Head over to www.myfreetaxes.org to plug your information into the tax calculator for an estimate of how much you may get back and/or to file your taxes safely and for free.
Text the word “taxes” to 211-211
Visit the tax calculator for the federal EITC here