The Earned Income Tax Credits (EITC) serve as tax credits specifically designed for individuals with a low to moderate income who are actively employed. If you meet the necessary criteria, you may become eligible to receive a cash refund or even lower the overall amount of tax that you owe.

There are two distinct EITCs available: the CalEITC (California Earned Income Tax Credit) and the EITC (federal Earned Income Tax Credit). The precise amount of CalEITC that an individual can receive depends on their income level and the size of their family. Furthermore, it is important to note that both the federal and state EITCs provide different opportunities for eligible individuals to reduce the amount of taxes owed.

If you meet certain requirements, you might be eligible for the CalEITC.

  • valid ID from a trusted source. qualifying child 
  • If your income is $30,950 or below, then you qualify for this opportunity.

 

Number of qualifying children
California maximum income
CalEITC (up to)
Federal EITC (up to)*
Young Child Tax Credit
None
$30,950
$285
$600
$0
1
$30,950
$1,900
$3,995
$1,117
2
$30,950
$3,137
$6,604
$1,117
3 or more
$30,950
$3,529
$7,430
$1,117

 

Note:

  • Parents may also be eligible for additional credits like the federal Child Tax Credit (CTC).
  • ITIN holders are exclusively eligible for the CalEITC as well as the California Young Child Tax Credit. Only individuals with an ITIN can qualify for the CalEITC and the California Young Child Tax Credit.
  • ITIN parents have the opportunity to avail the federal Child Tax Credit for their children who are citizens.

Discover if you meet the requirements and determine the sum of your credits by employing our CalEITC calculator. Feel free to utilize our CalEITC calculator to ascertain your eligibility and estimate the precise value of your credit.

Federal EITC

The EITC, also known as the Earned Income Tax Credit, is a tax benefit provided by the federal government to individuals who are employed and earn a moderate to low income. Unlike the CalEITC, which is specific to individuals with Social Security numbers, the EITC is open to anyone who meets the eligibility criteria. If you meet the requirements, you may be eligible for a reduced tax payment or even a larger refund. This means you will have more funds at your disposal to cover necessary expenses. So, take advantage of the EITC and keep more money in your pocket for your essential needs.

Regardless of your marital status, whether you're single or married, or if you have children or not, you have the opportunity to claim the credit. However, the main prerequisite for eligibility is that you must earn income from a job.

To be eligible for the federal EITC, you must meet the following criteria:

  • If you are filing a joint return, you and your spouse must be at least 19 years old or older.
  • other person who you can claim as a dependent must have a valid Social Security number to be eligible for certain tax benefits. It is important to ensure that both you and your spouse, if applicable, have a Social Security number for tax purposes. This requirement applies to any dependent you wish to claim on your tax return. Without a valid Social Security number, you may not be able to take advantage of certain tax deductions or credits. qualifying childrenpossess a Social Security number; AND also have a valid Social Security number; AND
  • If you (and your partner, if filing a joint return) have resided in the United States for over 50% of the tax year and consider it your primary residence, AND if you (and your partner, if filing a joint return) have maintained your main home in the United States for over 50% of the tax year, then
  • The claim for dependency or qualifying child cannot be made on your (or your spouse's) return, neither can it be claimed on anyone else's return.
  • You do not qualify if you are filing your taxes separately as a single individual; AND You do not meet the requirements if you are filing your taxes separately as an unmarried individual; AND
  • Your investment income for the tax year is equal to or below $10,000; AND Your investment income for the tax year is equal to or below $10,000; AND
  • You have made a minimum of $1 in earnings and a maximum of: You have earned at least $1 of income and not more than:

 

The Earned Income Tax Credit (EITC) for the tax year 2023 is an important financial benefit for low to moderate-income individuals and families. This credit is specifically designed to provide relief and assistance to those who work but still struggle to make ends meet. Implementation of the EITC helps to reduce the tax burden on eligible taxpayers, potentially resulting in a higher refund or lower overall tax liability.

Number of Children
Single individuals earning below the designated income threshold
Married individuals earning below the threshold
EITC up to
3 or more children
$56,838
$63,398
$7,430
2 children
$52,918
$59,478
$6,604
1 child
$45,560
$53,120
$3,995
No children
$17,640
$24,210
$600

 

Did I meet the requirements in the previous year? Was I eligible during the previous year?

Are you aware that it is possible to revise your tax returns for a period of three years if you discover that you are eligible for tax credits that you didn't initially apply for?

receive this credit. Take a look at the provided chart to determine whether you meet the criteria and are qualified to receive this refundable credit. Discover the highest AGI, investment income, and credit sums applicable for the fiscal year 2022. Search for the maximum AGI, investment income, and credit amounts applicable for tax year 2022.

Children or relatives claimed
Maximum AGI Rephrasing the text to make it unique while preserving the HTML markup:
Maximum AGIFiling as Married Filing Jointly
0
$16,480
$22,610
1
$43,492
$49,622
2
$49,399
$55,529
3
$53,057
$59,187

Investment income limit: $10,300 or less

Note

  • The federal EITC has special regulations that apply to individuals serving in the armed forces, members of the clergy, and individuals with certain disabilities.
  • a great way for low-income individuals and families to receive financial assistance. These tax credits, such as the CalEITC and EITC, provide a valuable opportunity for eligible individuals to reduce their overall tax burden and potentially receive a refund. The CalEITC and EITC programs aim to support those who are working but earning low wages. By offering these tax credits, the government acknowledges the importance of keeping hardworking individuals and families out of poverty and providing them with necessary resources. These tax credits are especially beneficial for individuals who may not qualify for other forms of government assistance. By providing financial relief through the tax system, individuals and families are able to take advantage of these credits to improve their financial situation and meet their basic needs. Furthermore, these tax credits have a positive impact on local communities and the overall economy. By putting more money into the hands of low-income individuals and families, the CalEITC and EITC help stimulate local spending and contribute to long-term economic growth. In conclusion, tax credits such as the CalEITC and EITC play a vital role in supporting low-income individuals and families. By providing financial assistance and reducing tax burdens, these credits empower individuals to improve their financial well-being and contribute to the broader economy. notPublic benefits are deemed as such by the U.S. Citizenship and Immigration Services.  
  • Discover additional information regarding the federal Earned Income Tax Credit (EITC) Gain further insights into the federal Earned Income Tax Credit (EITC) here.