Earned Income Tax Credit (2024)

Earned Income Tax Credit (1)

Claim your Refund

The Federal and California Earned Income Tax Credits (EITCs) are special tax breaks for people who work part time or full time. This means extra cash in your pocket. If you have work income, you can file and claim your EITC refunds, even if you don’t owe any income tax. Claiming your EITC is easy. Just file your state and/ or federal tax returns. Be sure to check both state and federal eligibility requirements.

FEDERAL EITC

Federal EITC requires filing of your federal return (form 1040EZ, 1040 or 1040A and Schedule Earned Income Credit). You can also file amended returns for three years back if you did not claim your EITC or CTC in prior years. There is no late filing penalty if you do not owe any tax in the prior year.

Federal Qualifying Chart
Number ofQualifying Children Single, Headof Household or Widowed MarriedJointly Filing Federal EITC Maximum Credits
None $15,010 $20,600 $510
1 $39,617 $45,207 $3,400
2 $45,007 $50,597 $5,616
3 or more $48,340 $53,930 $6,318


IRS Update: Legalized same-sex couple marriages are recognized and will be treated as married for federal tax purposes (Revenue Ruling 2013-17). The ruling applies to all federal tax provisions where marriage is a factor including: filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming EITC or CTC. For more information, please visit www.irs.gov and see Publication 555.

CALIFORNIA EITC

California EITC requires filing of your state return (form 540 2EZ or 540) and having earned income reported on a W-2 form (i.e. wages, salaries, and tips) subject to California withholding. Self-employment income cannot be used to qualify for state credit.

California Qualifying Chart
Number ofQualifying
Children
State EITC Income
Limits
State EITC Maximum
Credits

None

$15,008

$223
1 $22,322 $1,495
2 $22,309 $2,467
3 or more $22,302 $2,775

The EITC refunds are not counted as income when your CalWorks, CalFresh or Medi-Cal benefits are calculated. For more details, please contact your eligibility worker.

Free resources to help you file your tax return

  • EITC Brochure in Spanish/English: This printable brochure provides information about the Federal and California Earned Income Tax Credits (EITCs) along with the eligibility requirements.
  • Internal Revenue Service (IRS): For more information about the Federal EITC, please visit the EITC web siteor call 1-800-829-1040.
  • Franchise Tax Board (FTB): File your state tax return directly to FTB for free with CalFile. For more information, please contact FTB at 1-800-852-5711 or visitthe FTBweb site.
  • CalEITC: California joins 24 other states and the District of Columbia in adopting a state EITC to supplement the federal EITC. For more informationvisitCalEITC4Me. In addition tothe CalEITC Calculator to determine how much money eligible filers can get back, and a Free Tax Prep Finder to help people find convenient free tax preparation sites in their neighborhoods, there is also resources in
Earned Income Tax Credit (2024)

FAQs

Who is eligible for the earned income tax credit? ›

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.

How do I calculate my earned income tax credit? ›

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.

What is earned income? ›

Earned Income. Earned income includes all of the following types of income: Wages, salaries, tips, and other taxable employee pay. Employee pay is earned income only if it is taxable. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income.

Can you get both EITC and child tax credit? ›

The CTC is worth up to 15% of your income, up to $2,000, but it is not fully refundable. It is phased out at a much lower level compared to the EITC and is intended to help almost all working families in raising their children. Accessing one does not restrict taxpayers from claiming the other.

Who Cannot claim EIC? ›

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.

How do I know if I received 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.

Is EIC based on total income? ›

The EITC amount is based on formulas that consider earned income, number of qualifying children, marital status, and adjusted gross income (AGI). In general, the EITC equals a fixed percentage (the “credit rate”) of earned income until the credit reaches its maximum amount.

How much will my tax return be if I made $35,000? ›

If you make $35,000 a year living in the region of California, USA, you will be taxed $6,243. That means that your net pay will be $28,757 per year, or $2,396 per month.

What is the average tax return for a single person making $60,000? ›

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.

What are three examples of earned income? ›

For the year you are filing, earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are: wages; salaries; tips; and other taxable employee compensation. Earned income also includes net earnings from self-employment.

What is the cut-off for earned income credit? ›

California Qualifying Chart
Number of Qualifying ChildrenState EITC Income LimitsState EITC Maximum Credits
None$15,008$223
1$22,322$1,495
2$22,309$2,467
3 or more$22,302$2,775

What is the difference between earned income and total income? ›

Gross income is all income an individual earns during the year both as a worker and as an investor. Gross income is derived from income sources beyond those related to employment. Earned income only includes wages, commissions, bonuses, and business income minus expenses, if the person is self-employed.

What qualifies you for earned income credit? ›

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)

What is the difference between EITC and EIC? ›

When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. The credit is subject to income limitations. The Earned Income Tax Credit (EITC), sometimes called EIC, is a tax credit for workers with low to moderate income.

How much is EIC and child tax credit? ›

2021 CalEITC credit
Number of qualifying childrenCalifornia maximum incomeFederal EITC (up to)
None$30,000$1,502
1$30,000$3,618
2$30,000$5,980
3 or more$30,000$6,728
Mar 28, 2024

Can I get earned income credit if I get Social Security? ›

Am I eligible for the EITC if I get Social Security or SSI? Yes, if you meet the qualifying rules of the EITC. Receiving Social Security or SSI doesn't affect your eligibility for the EITC.

Can I claim my 25 year old son as a dependent? ›

Your child must be under age 19 or, if a full-time student, under age 24. There's no age limit if your child is permanently and totally disabled. Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.

How to qualify for the American Opportunity credit? ›

To be eligible for AOTC, the student must:
  1. Be pursuing a degree or other recognized education credential.
  2. Be enrolled at least half time for at least one academic period* beginning in the tax year.
  3. Not have finished the first four years of higher education at the beginning of the tax year.
Jan 24, 2024

What is the maximum amount Scott and Barbara are eligible to claim for the Child Tax Credit? ›

Expert-Verified Answer

Scott and Barbara can claim a total of $4,000 for the child tax credit since they are eligible to claim $2,000 for each of their two qualifying children under the age of 17. Explanation: The question asks for the maximum amount Scott and Barbara are eligible to claim for the child tax credit.

Top Articles
Latest Posts
Article information

Author: Virgilio Hermann JD

Last Updated:

Views: 6172

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Virgilio Hermann JD

Birthday: 1997-12-21

Address: 6946 Schoen Cove, Sipesshire, MO 55944

Phone: +3763365785260

Job: Accounting Engineer

Hobby: Web surfing, Rafting, Dowsing, Stand-up comedy, Ghost hunting, Swimming, Amateur radio

Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you.