Details relating to the California Earned Income Tax Credit (CalEITC) for 2023 have been released.
Families who meet certain requirements are eligible to have their tax burden reduced or even receive tax credits.
You may be qualified for a cash refund of up to $3,417 or a tax credit. This amount, however, is reserved for families with the greatest number of children and rapidly decreases for those without dependents.
Earned Income Tax Credit in California
To qualify for CalEITC during the tax year, the user must meet all of the following requirements:
- You are at least 18 years old or have a child who qualifies.
- Have a minimum of $1.00 in earned income and no more than $30,000
- Possess a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, and any qualifying children.
- Having spent more than half of the filing year in California
- Not be eligible to be claimed as another taxpayer’s qualifying child
Unless you have a qualifying child, you cannot be claimed as another taxpayer’s dependent.
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How Much Can I Get?
The CalEITC is a tax credit that provides either a refund on taxes paid or a deduction on taxes owed, unlike the Golden State Stimulus checks, which are direct payments. Before you can receive the credit, you must file your state tax return, and the amount available varies greatly depending on your situation.
The highest amount of tax credit you may earn cannot exceed the total amount of California taxes you paid for the year. These numbers represent the number of dependent children listed on your 2022 California tax return:
- No children – $275
- One child – $1,843
- Two children – $3,037
- Three or more children – $3,417
The earned income tax credit (EITC) provides substantial assistance to low- and moderate-income working parents who claim an eligible child based on relationship, age, residency, and tax filing status criteria. Before the American Rescue Plan (ARP), it provided very little assistance to workers without qualifying children (often referred to as childless workers). However, the ARP significantly increased the credit for these workers through 2021.
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