Tax season is here, and I wanted to highlight the California Earned Income Tax Credit program, which provides tax refunds to millions of lower-wage workers and their families.
If you are at least 18 years old and earned a maximum of $30,950 last year (2023), you could be eligible for a tax refund of up to $3,529, depending on the size of your household. Plus, another $1,117 could be added on top of that for each of the following:
- Young Child Tax Credit (YCTC): Families with young children under the age of six
- Foster Youth Tax Credit (FYTC): 18 to 25 year olds placed in the foster care system when they were ages 13 or up.
During the years I was Chair of the Assembly Budget Committee, I was a big champion of CalEITC because it’s an effective anti-poverty tool that puts money back into the pockets of people who need it the most. I’ve successfully expanded the program so that more workers qualify.
For the 2022 tax year, nearly 3.5 million Californians claimed CalEITC, YCTC, and/or FYTC, receiving refunds totaling $1.3 billion. The money has helped many save for an emergency or meet everyday expenses, which cost less in recent months thanks to the Biden administration’s policies to tame inflation.
I don’t want you to miss out on the tax credit. I encourage income-eligible workers, including ITIN holders, to file a tax return, even though they generally don’t owe taxes. The paperwork is necessary in order to receive the CalEITC refund.
Resources, including a list of organizations offering free tax assistance to claim the credit, are available at CalEITC4me.org. If you qualify, they’ll also help you with filling out the necessary forms. Be sure to ask if you are eligible for the federal Earned Income Tax Credit, which has higher income limits and refunds.
