All Californians, regardless of their county, race, age, or immigration status, should have the support they need to make ends meet. State refundable tax credits, like the California Earned Income Tax Credit, are a key way the state provides economic support to Californians with low incomes to help families and individuals:

• avoid poverty and food hardship
• have better health
• experience improved educational achievement and economic security.

What is the California Earned Income Tax Credit?

The California Earned Income Tax Credit, commonly known as the CalEITC, is a refundable tax credit that provides economic support to Californians with low incomes and helps individuals and families pay for basic needs like housing, food, and other necessities.

Who is eligible for the CalEITC?

The CalEITC is targeted to families and individuals with the lowest incomes and is available to people who file taxes without regard to immigration status. The CalEITC reaches people with earnings from $1 to $30,000 — equivalent to a full-time, minimum-wage salary.

Resources in this Series

Check out our essential resources to help you better understand the California Earned Income Tax Credit:

What is the Young Child Tax Credit and who benefits from it?

The Young Child Tax Credit, also known as the YCTC, is another state refundable tax credit available to families eligible for the CalEITC with children under the age of 6. The YCTC provides a $1,000 credit to each qualifying family with earnings under $25,000, and a credit of less than $1,000 to each qualifying family with earnings between $25,000 and $30,000.

Do you have a child under the age of 6?

If you qualify for the CalEITC and have a child under the age of 6, you may also qualify for a refundable tax credit through the Young Child Tax Credit.

Learn more

Are workers who file taxes with an ITIN eligible for the CalEITC?

At the beginning of the 2020 tax year, California expanded access to the California Earned Income Tax Credit to workers who file taxes with an Individual Taxpayer Identification Number (ITIN). ITIN holders qualify for both the CalEITC and the Young Child Tax Credit.

ITINs are available to tax filers who are not eligible for a Social Security Number — typically immigrants to the US without legal work status — and are used to file federal and state income taxes, to open bank accounts, and in other situations that require an official government identification number.

California can expand the CalEITC and YCTC

Across all regions of California, millions of children, parents, and working adults are eligible to claim the California Earned Income Tax Credit by filing their taxes. State leaders can do several things to make sure the CalEITC delivers the support these Californians need to meet their basic needs and thrive:

• Increase the CalEITC minimum credit (minimum is currently $1)
• Expand the Young Child Tax Credit to families with kids of any age (not just 0-5).

Want to learn more? Reach out to our experts on tax credits:

Alissa Anderson

Policy Director

Kayla Kitson

Senior Policy Analyst