California Tax Credits for Working Families
What is CalEITC?
The California Earned Income Tax Credit (CalEITC) is a cash-back tax credit designed to put money in the pockets of low-income working families and individuals.
You may qualify for the CalEITC if:
- You’re at least 18 years old or have a qualifying child.
- You have earned income of $30,000 or less.
The amount of CalEITC you get depends on your household status, income, and family size.
No Social Security number? No problem! For the first time, taxpayers with an ITIN — Individual Taxpayer Identification Number — are eligible for the CalEITC and the YCTC when paying their 2020 taxes.
Federal EITC Credits
The Earned Income Tax Credit (EITC) is a federal tax credit for working people who have earned a low-to-moderate income. Unlike the CalEITC, only people with Social Security numbers qualify. If you qualify, you may see a reduced tax bill or a bigger refund.
For the first time, due to the COVID-19 pandemic, the federal government is allowing you to use either your 2020 or 2019 earned income to qualify for the federal EITC.
Note: Taxpayers with an ITIN — Individual Tax Identification Number — are eligible for the CalEITC, not the federal EITC.
Do you have a child under the age of 6?
If you qualify for CalEITC and have a child under the age of 6, you may also qualify for a refundable tax credit of up to $1,000 through the Young Child Tax Credit (YCTC)!
*Qualifying children must be under 6 years of age as of December 31, 2020.
Note: Taxpayers with an ITIN — Individual Tax Identification Number — are eligible for the state YCTC, not the federal CTC.
What is the Golden State Stimulus?
California is supporting low-income residents with a one-time payment of $600 to everyone who claims the California Earned Income Tax Credit (CalEITC) during the 2020 tax season. There is an additional $600 payment available to people who filed their taxes with an Individual Taxpayer Identification Number (ITIN) and made $75,000 or less in 2020.
The Golden State Stimulus aims to:
- Support low-income Californians.
- Help those facing a hardship due to COVID-19.