Do you qualify for earned income tax credit in California? Here’s how much you could get
For those filing taxes for the first time this year — fair warning — you’re going to find yourself in a pile of income statements, receipts and complex tax jargon.
Among the big glossary of terms, make sure you know what “earned income tax credit” is so you can save or cash in more money.
Earned income tax credit is a tax break for families and individuals that have low to moderate income levels. According to the Get it Back campaign, a tax resource effort, the EITC is a credit that will either give you money back during tax season or cut federal taxes you owe.
California also has its own earned income tax credit, known as as CalEITC.
Here’s how to see if you qualify
Both the state of California and federal government have earned income tax credits with respective requirements.
- At least 18 years old or have a qualifying child
- Have earned income within certain limits ($30,000 maximum)
- Live in California for more than six months
- Have a social security number or an individual taxpayer identification number for yourself, your spouse and qualifying child, if applicable.
- Not use “married/RDP filing separate” if married
To qualify for the earned income tax credit, you need to meet certain basic criteria, according to the Internal Revenue Service. First, you need to be a worker and earn under $57,414.
The maximum income changes depending on your filing status. For example, if you are filing as a single adult, claiming no children or relatives, the maximum adjusted gross income is $21,430. The IRS provides a chart on its website for qualifying brackets.
If you have investment income in the 2021 tax year, it must be under $10,000.
Other requirements outlined by the IRS include the following:
Have a social security number by the time you turn in your 2021 tax return
Have U.S. citizenship or resident alien status all year
Did not file Form 2555, a form for earned income overseas
If you are a member of the military or clergy, or if you have disabilities or have relatives who do, you’ll have additional rules and specifications.
Claiming without a child
If you’re claiming EITC without a child, you’ll need to meet the basic requirements as well as:
Have a main residence in the U.S. for more than half of the tax year. This includes the 50 states, D.C. and military bases in the country.
Someone does not claim you as a qualifying child on their tax return
Be 19 years of age. But if you are a former foster or qualified homeless youth you can be at least 18 years old.
If you’re a student, you must be 24 years or older.
IRS EITC assistant
If you need help figuring out if you can claim earned income tax credit, you can use the IRS EITC online tool.
The digital form will tell you your eligibility, if you have qualifying children or relatives, how much your credit could be and your filing status. You just need to have your income records, tax documents and expense statements nearby.
How much could I get?
California Franchise Tax Board has estimations on how much money you may get when you file your 2021 return.
If you have:
- No children, a maximum income of $30,000, then you can get up to $255 on CalEITC and up to $1,502 on IRS EITC.
- One qualifying child, a maximum income of $30,000, then you can get up to $1,698 on CalEITC and up to $3,618 on IRS EITC.
Two children, a maximum income of $30,000, you can get up to $2,809 on CalEITC and up to $5,980 on IRS EITC.
Three or more children, a maximum income of $30,000, you can get up to $3,160 on CalEITC and up to $6,728 on IRS EITC.
How to check refund status
If you’re an early bird and you already filed your taxes, you can check the status of your refund on the IRS website. According to the agency, most refunds will arrive by March 1. However, if you file for EITC, yours may be delayed.
This story was originally published February 26, 2022 at 5:00 AM.