California joins 31 other states and the District of Columbia in adopting a state-level EITC, aptly named CalEITC, to supplement the federal EITC.
The California Earned Income Tax Credit or CalEITC is a refundable cash-back tax credit that puts money back into the pockets of California’s working families and individuals with annual earnings under $30,000.
FAQ #
Who qualifies for earned income credit in California? #
To qualify for CalEITC you must meet the following requirements during the tax year:
- At least 18 years old or have a qualifying child
- Live in California for more than half the filing year
- Have earned income of not more that $30,000
- Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for you, your spouse, and any qualifying children
- Not be eligible to be claimed as a qualifying child of another taxpayer
- Not be eligible to be claimed as a dependent of another taxpayer unless you have a qualifying child
How much is the California earned income credit? #
For the CalEITC, the most a family could get is $3,417 plus $7,430 in federal EITC. If you have a child under age 6, you qualify for the new Young Child Tax Credit (YCTC), which could mean an additional $1,083 in your refund.
Young Child Tax Credit (YCTC) is a new credit for parents with at least one child younger than age 6. As of 2023, filers with young children can claim the YCTC even if they do not have any earned income.
Review the chart below to see if you may be eligible and how much you may qualify for when filing your 2023 tax return.
| NO. OF CHILD | Income Limit | EITC | CalEITC | YCTC |
|---|---|---|---|---|
| 0 | $30,000 | $600 | $275 | $0 |
| 1 | $30,000 | $3,995 | $1,843 | $1,083 |
| 2 | $30,000 | $6,604 | $3,037 | $1,083 |
| 3 or more | $30,000 | $7,430 | $3,417 | $1,083 |
Please note that credits phase in and out at different income levels. For exact results, use the CalEITC Calculator to find out how much credit you may get.
How do you claim California EITC? #
To claim credit, you will need to file a California income tax return and complete an FTB 3514, Earned Income Tax Credit form (FTB 3514 Instructions) or file directly with CalFile for free with a MyFTB account.
If you are over the age of 60 and have limited income, you may get free help e-filing your tax return through the Voluntary Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) program.