New Earned Income Tax Credit Available for Low Income Families

Friday, April 15, 2016

California is now offering an Earned Income Tax Credit (EITC) for working low-income families and individuals. In addition to the federal EITC, the new state Earned Income Tax Credit will put more money in the pockets of those who need it most.

If you qualify for the CA EITC and the amount of the credit is greater than the tax you owe, you will receive a refund. Assemblymember Jim Cooper invites you to attend an EITC tax preparation workshop in your area:

Asian Community Center
7375 Park City Drive
Sacramento, CA 95831
(916) 393-9026

Lodi Family Resource Center
631 East Oak Street
Lodi, CA 95240
(209)339-1183

Department of Human Assistance
2450 Florin Road
Sacramento, CA 95822
(916)874-3100

Elk Grove Public Library
8900 Elk Grove Boulevard
Elk Grove, CA 95624
(916) 264-2700

Elk Grove Senior Center
8830 Sharkey Avenue
Elk Grove, CA 95624
(916)685-3160

Goodwill- South Sacramento
6630 Franklin Boulevard
Sacramento, CA 95823
(916)395-9000

LOEL Center and Gardens           
105 South Washington Street
Lodi, CA 95240
(209)369-1591

Robbie Waters Pocket-Greenhaven Library
7335 Gloria Drive
Sacramento, CA 95831
(916)264-2700

Sam and Bonnie Pannell Community Center
2450 Meadowview Road
Sacramento, CA 95832
(916)808-6680

Valley Hi- North Laguna Library
7400 Imagination Parkway
Sacramento, CA 95823
(916)264-2920

The state Earned Income Tax Credit is available to California households with adjusted gross incomes of less than $6,580 if there are no qualifying children, less than $9,880 if there is one qualifying child, or less than $13,870 if there are two or more qualifying children. See below for more qualifications.
Qualifications:

  • You must file a state tax return, even if you do not owe any tax or are not otherwise required to file.
  • You must have earned income from W-2 wages, salaries, tips, or other employee compensation subject to California withholding. (For the CA EITC, earned income does not include income from self-employment.)
  • You, your spouse, and any qualifying children must each have a social security number issued by the Social Security Administration that is valid for employment.
  • You must file using the single, married/registered domestic partner (RDP) filing jointly, or head of household filing status. The “married/RDP filing separately” status may not be used.
  • You must either:
    • Meet the rules for those without a qualifying child; or
    • Have an individual that meets all of the qualifying child rules for you or your spouse if you file a joint return.
  • Your principal residence must be in California for more than half the tax year.
  • Both your adjusted gross income and earned income (defined above) must be no more than:
    • $6,580 if there are no qualifying children.
    • $9,880 if there is one qualifying child.
    • $13,870 if there are two or more qualifying children.
    • Your investment income, such as interest, dividends, royalties, and capital gains cannot exceed $3,400 for the entire tax year.

Visit https://www.ftb.ca.gov/individuals/faq/net/900.shtml for more information.