California Earned Income Tax Credit (2024)

FAQs

Do I qualify for the 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.

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 ...

The most common reasons people don't qualify for the Earned Income Tax Credit, or EIC, are as follows: Their AGI, earned income, and/or investment income is too high. They have no earned income.

Claiming a child who is not a qualifying child for the EITC – This error occurs when taxpayers claim a child who does not meet all four tests for a qualifying child. This is the most common EITC error.

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.

Received Earned Income Credit (EIC)

If you filed a 2022 tax return and received the EIC, it will be listed on IRS Form 1040, line 27.

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.

To qualify for the EITC, you must: Have worked and earned income under $63,398. Have investment income below $11,000 in the tax year 2023. Have a valid Social Security number by the due date of your 2023 return (including extensions)

Your AGI can't exceed $17,640 if you're single or head of household, or $24,210 if you're married filing jointly. If you have one child, you can claim up to $3,995. In this case, the AGI limit for single or head-of-household filers is $46,560 and $53,120 for those married filing jointly.

Who is excluded from EITC? ›

You may qualify for the EITC if you are 19 years old or older and not a student. There are two exceptions: Workers who are 19-23 and were a full- or part-time student for more than 5 months in 2021 do not qualify.

You can't claim the credits for: 2 years after we made a final decision to reduce or deny your EITC due to reckless or intentional disregard of the rules. 10 years after we made a final decision to reduce or deny your EITC due to fraud.

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.

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.

No, stimulus checks are not coming from the IRS or California in 2024. Don't fall for false rumors. Questionable websites have been raising false hopes about new government payments for years. Lately, the volume of such reports seems to have increased.

Ban You from Claiming the EITC

You can't claim the credits for: 2 years after we made a final decision to reduce or deny your EITC due to reckless or intentional disregard of the rules. 10 years after we made a final decision to reduce or deny your EITC due to fraud.