What is the Earned Income Tax Credit?
The Earned Income Tax Credits (EITC), both federal EITC and state CalEITC, are cash-back tax credits for low-income working families and individuals, particularly those with children. Eligibility for both the federal and state CalEITC is based on your earned income. The EITC is one of the most effective tools in America to lift families out of poverty.
What is CalEITC?
California joined 24 other states and the District of Columbia to adopt a state EITC to supplement the federal EITC. The California Earned Income Tax Credit (CalEITC) helps working families with low incomes better afford fundamental necessities. Californians that qualify for the federal EITC will likely also qualify for the federal EITC.
For tax year 2019, families and individuals earning wages or self-employment income up to $30,000 may qualify for CalEITC and even if your wages are more than $30,000, you may still be eligible for the federal EITC.
If you qualify for CalEITC and have a child under the age of 6, you may be eligible for the new Young Child Tax Credit (YCTC).