CalEITC qualification expanded – updateApril 2022 Tax News

A fourth option is now available for taxpayers

For tax year 2021, a fourth option has been added for married/registered domestic partner (RDP) not filing a joint return, who meet the requirements, have already filed a California return, and did not claim the California Earned Income Tax Credit (CalEITC):

• File a superseded return on or before the April 18, 2022 due date
• Wait for a letter from FTB for instructions
• File an amended return

Or

• New: Submit a completed FTB 3514, California Earned Income Tax Credit. Go to ftb.ca.gov and search for 2021 FTB 3514 to locate instructions on how to download and print. Mail your completed FTB 3514 to:

Franchise Tax Board

PIT Correspondence
PO Box 942840
Sacramento, CA 94240-0040

As tax professionals, we remind you that it is important for you to verify your client qualifies for the CalEITC and to complete and keep copies of the:

• Paid Preparer’s California Earned Income Tax Credit Checklist (FTB 3596)
• CalEITC worksheet

You may be subject to a $500 penalty if you do not comply with CalEITC requirements.

For more information, please read Public Service Bulletin 2022-07 - EITC Qualification Expanded, and visit our California Earned Income Tax Credit and Young Child Tax Credit webpage.