Money Back for Working Californians
This tax season, I wanted to share some important updates to the California Earned Income Tax Credit (Cal EITC) with you. The Cal EITC is a cashback credit that can give you the resources to pay for the things you need.
By directly boosting the incomes of working families, the earned income tax credit helps lift millions of Californians out of poverty, encourages employment, and has been shown to improve children's health and academic performance. Studies find that increasing low-income families' incomes is linked to improved outcomes for children, particularly if families receive income boosts when their children are young.
In California, the EITC with the Child Tax Credit lifted nearly 1.3 million people –including 643,000 children – out of poverty each year, on average, between 2015 and 2017.
Now for the first time, the California Earned Income Tax Credit (Cal EITC) is available to all workers age 18 and older who made $30,000 in 2019.
On top of that, California created a NEW Young Child Tax Credit this year that could mean up to an additional $1,000 back when you file your taxes. Parents with children under age 6 qualify for the Young Child Tax Credit with the first dollar they earned in 2019.
Between the Young Child Tax Credit, the CalEITC and the federal EITC, working families could receive up to $8,000 back in their tax refund this year. You can use CalEITC4Me's refund calculator tool to find out if you're eligible for these credits, and discover how much cash you could get back in your pocket.
You can even file returns for free. Dedicated volunteers at Volunteer Income Tax Assistance (VITA) locations around the Central Coast are ready to prepare state and federal returns and help those who qualify claim their credit(s):
In addition to the state tax credits, a family earning less than $55,952 may qualify for the federal EITC when filing a federal income tax return.
To get these credits, all eligible families have to do is file state and federal tax returns.
For more information about valuable, cash-back tax credits, and opportunities for free tax prep assistance all around California, visit CalEITC4Me.org and www.ftb.ca.gov/caleitc.
Please stay in touch. As always, feel free to contact me by email, and follow me on Facebook, Twitter or Instagram.
Senator Hannah Beth Jackson
State Senator, 19th Senate District