California has two refundable income tax credits that boost the incomes of people who earn little from their jobs, helping them to afford necessities. These are:
- The California Earned Income Tax Credit (CalEITC) – available to families and individuals with annual earnings under $30,000; and
- The Young Child Tax Credit (YCTC) – available to CalEITC-eligible families with children under age 6.
These credits reduce the amount of state income tax California families and individuals owe based on how much they earn from work and how many qualifying children they live with. Since these credits are refundable, people who qualify for a credit that exceeds the amount of income tax they owe can receive the balance as a tax refund. This means that families and individuals who do not owe any state income tax can get the full credit that they qualify for as a refund.
Two federal refundable income tax credits are also available to families and individuals who earn little from work. These are:
- The federal Earned Income Tax Credit (EITC), which is a refundable credit available to families and individuals with low or moderate earnings from work; and
- The federal Child Tax Credit (CTC), which is a partially refundable credit available to families with children under age 17 who have low, moderate, or high earnings from work.
This updated interactive tool estimates how much people can expect to receive from all four of these credits in tax year 2019 based on their tax filing status, number of children, and annual earnings from work. The additional chart below the interactive shows on a smaller scale the two credits that individuals without children may qualify for – the federal EITC and CalEITC.
- See additional information about these credits and assumptions underlying this interactive tool and chart.