California Earned Income Tax Credit (2024)

FAQs

How do I qualify for California Earned Income Tax Credit? ›

You're at least 18 years old or have a qualifying child. Have earned income of at least $1.00 and not more that $30,950. Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for you, your spouse, and any qualifying children. Live in California for more than half the filing year.

Income limits for the EIC

You can't claim the Earned Income Credit if your AGI exceeds the income limits. To see if you might qualify, use this table to find the maximum credit amounts for tax year 2023 (taxes filed in 2023) and tax year 2023 (taxes filed in 2025) based on your AGI.

You can't claim the EIC unless your investment income is $11,000 or less. If your investment income is more than $11,000, you can't claim the credit. Use Worksheet 1 in this chapter to figure your investment income.

If your adjusted gross income is greater than your earned income your Earned Income Credit is calculated with your adjusted gross income and compared to the amount you would have received with your earned income. The lower of these two calculated amounts is your Earned Income Credit.

Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own.

Have an Adjusted Gross Income (AGI) on your 2020 CA tax return, that is: If filing as Head of household, qualifying widow(er), Married/Registered Domestic Partner (RDP) filing jointly: $500,000 or less. If filing as Single or Married/Registered Domestic Partner (RDP) filing separately: $250,000 or less.

Here are some key highlights of what disqualifies you from Earned Income Credit in 2023 and 2024: 1. Investment Income - If you have investment income of more than $11,000 in 2023 or 2024, you will not be eligible for the EIC. Investment income includes things like interest, dividends, and capital gains.

If you received more than $11,000 in investment income or income from rentals, royalties, or stock and other asset sales during 2023, you can't qualify for the EIC. This amount increases to $11,600 in 2024. You have to be 25 or older but under 65 to qualify for the EIC.

In general, disqualifying income is investment income such as taxable and tax-exempt interest, dividends, child's interest and dividend income reported on the return, child's tax-exempt interest reported on Form 8814, line 1b, net rental and royalty income, net capital gain income, other portfolio income, and net ...

Investment income includes interest income (including tax-exempt interest), dividends, net rent, net capital gains, and net passive income. It also includes royalties that are from sources other than your business activities. To receive the state credit, your investment income must be $4,525 or less in 2023.

Can you get Earned Income Credit with zero income? ›

by TurboTax• 29• Updated 9 months ago. You do not qualify for the Earned Income Credit (EIC) unless you have earned income and meet all the other EIC qualifications. Being unemployed, not working, and/or not meeting the filing threshold automatically disqualifies you from the EIC.

WHO QUALIFIES FOR CALEITC? – You have earned income of $30,000 or less. DO I QUALIFY EVEN IF I DON'T HAVE A VALID SOCIAL SECURITY NUMBER? THE AMOUNT OF THE TAX CREDIT DEPENDS ON YOUR INCOME AND FAMILY SIZE.

Yes, in order to determine eligibility the CalFresh office views information from government and state agencies including the department of Internal Revenue Services (IRS), which handles your taxes.

In general, to qualify for the EITC, you must have earned income under $63,398 in 2023 or $66,819 in 2024. You need to have a valid Social Security number, be a citizen or resident alien and not file Form 2555 for Foreign Earned Income. You also can't have more than $11,000 ($11,600 for 2024) in investment income.

You may be eligible for a California Earned Income Tax Credit (CalEITC) up to $3,529 for tax year 2023 as a working family or individual earning up to $30,950 per year. You must claim the credit on the 2023 FTB 3514 form, California Earned Income Tax Credit, or if you e-file follow your software's instructions.

If you qualify, you will claim your Earned Income Tax Credit when you file your federal tax return. To calculate the value of your EITC, you can use the Earned Income Credit Worksheet in your IRS Form 1040 instruction booklet.

Federal EITC

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.