California Earned Income Tax Credit (EITC)
Tax year 2015
California will offer a state Earned Income Tax Credit (EITC) starting with tax returns filed for income earned in 2015. For California’s EITC, the definition of earned income includes W-2 income such as wages, salaries, tips, and other employee compensation, that are subject to California withholding. Earned income would specifically exclude income from self-employment.
Taxpayers with adjusted gross income (or, if greater, earned income) of less than $13,870 may qualify for a credit up to $2,653, depending on the number of qualifying children. The state credit will be “refundable”, meaning that taxpayers do not have to have a tax liability to get a refund of the earned income tax credit from the state.
The California tax credit complements the existing federal EITC.
Tax years prior to 2015
California does not offer a state EITC for tax years prior to 2015.
The federal EITC is a refundable federal credit that can reduce the federal tax you owe or result in a refund to you. To find out if you are eligible to claim EITC on your federal return, you can:
- Go to the Internal Revenue Service (IRS) website to find out if you qualify for EITC.
- Call the IRS at 800.829.4477 and enter topic 601 when instructed.
Education and outreachIf you would like to partner with us to educate eligible taxpayers about the new California EITC, contact us at PublicAffairsOffice@ftb.ca.gov or call us at 916.845.4800.