You may be eligible for a California Earned Income Tax Credit (CalEITC) up to $3,644 for tax year 2024 as a working family or individual earning up to $31,950 per year.
You need to fill out the 2024 FTB 3514 form, which is the California Earned Income Tax Credit, and send it in. If you file electronically, follow the directions that came with your software. Generally, you may claim CalEITC to receive a refund for up to four prior years prior by filing or amending your state income tax return.
The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and families. The amount of EITC you can claim depends on your income, marital status, and number of qualifying children. For tax year 2021, the EITC limits are as follows:
EITC Income Limits for 2021
To qualify for the EITC in 2021, your adjusted gross income (AGI) and earned income must be below the following thresholds
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Filing as Single, Head of Household, Widowed or Married Filing Separately:
- $21,430 if you have no qualifying children
- $42,158 if you have one qualifying child
- $47,915 if you have two qualifying children
- $51,464 if you have three or more qualifying children
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Filing as Married Filing Jointly:
- $27,380 if you have no qualifying children
- $48,108 if you have one qualifying child
- $53,865 if you have two qualifying children
- $57,414 if you have three or more qualifying children
Your earned income includes salaries, wages, tips, and the money you make from working for yourself. AGI is the sum of all of your earned income and other income, such as interest, dividends, alimony, capital gains, and so on.
If your AGI or earned income exceeds the thresholds above, you will not qualify for the EITC. The income limits are higher for married couples filing jointly
EITC Maximum Credit Amounts for 2021
In addition to income limits, there are maximum credit amounts you can claim based on the number of qualifying children you have:
- With no qualifying children, you can claim a maximum credit of $1,502
- With one qualifying child, you can claim a maximum credit of $3,618
- With two qualifying children, you can claim a maximum credit of $5,980
- With three or more qualifying children, you can claim a maximum credit of $6,728
So if you are single with two children and your income qualifies, you could potentially claim an EITC of up to $5,980 when you file your 2021 taxes in 2022. The more qualifying children you have, the higher your maximum credit amount will be, up to $6,728.
What is a Qualifying Child for the EITC?
A qualifying child for the EITC must meet certain age, relationship, residency and tax return requirements:
- Must be under age 19 at the end of 2021 (or under 24 if a full-time student)
- Must be your son, daughter, adopted child, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister or a descendant of any of these relatives
- Must have lived with you for more than half of 2021
- Must not file a joint tax return for 2021
Having one or more qualifying children opens up the potential for a much larger EITC based on the maximum credits above. Children must meet all the requirements to be considered qualifying children.
EITC Income Limits Vary by State
The federal EITC income limits above apply across all states. But more than half of states also have their own Earned Income Tax Credits, which have different rules about who can get them.
For example, the income limits to qualify for California’s EITC (called CalEITC) are much higher in 2021:
- $30,846 with no qualifying children
- $37,094 with one qualifying child
- $42,158 with two qualifying children
- $56,844 with three or more qualifying children
So California residents may qualify for CalEITC even if their income exceeds the federal limits. Be sure to check the rules for your state.
Claiming the EITC with Your Tax Return
To receive the Earned Income Tax Credit, you must file a federal tax return (and state return if applicable) and specifically claim the EITC. The credit will not be issued automatically.
It’s not until 2022 that you can claim the EITC for the 2021 tax year. You can use Schedule EIC from the IRS to figure out your credit, or you can have tax software do it for you.
If eligible, the EITC will either lower your tax liability or give you a tax refund. Most tax preparation services can help determine if you qualify.
The EITC provides substantial tax credits for low- and moderate-income working families and individuals. For 2021, the maximum credits range from $1,502 to $6,728 based on income, marital status and number of qualifying children. Be sure to check both federal and state rules to maximize your potential credit. Claim the EITC when filing your 2021 taxes in 2022.
Check if you qualify
You can find out more about this and other credits on our CalEITC homepage. You can also use our EITC calculator to get an idea of how much credit you might be able to get.
Filing your state tax return is required to claim this credit.
If paper filing, download, complete, and include with your California tax return:
Prior tax year credit forms:
Earned Income Tax Credit (EITC) Explained
FAQ
How do I know if I qualify for earned income credit 2021?
Check if you qualify for CalEITCYou’re at least 18 years old or have a qualifying child. Have earned income of at least $1 and not more than $31,950. Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for you, your spouse/RDP, and any qualifying children.
What disqualifies you from earned income credit?
You or your spouse don’t have a valid SSN. It looks like your AGI is too high. If your earned income and AGI are higher than certain limits, you might not be able to get the EIC. Your investment or foreign income is too high: Both scenarios disqualify you from taking the credit.
How is the earned income credit calculated?
Your Earned Income Credit is based on your adjusted gross income minus the amount you would have gotten from your earned income if your adjusted gross income is higher than your earned income. The lower of these two calculated amounts is your Earned Income Credit.
Does everyone get an Earned Income Tax Credit?
You may be eligible for the EITC if you have a low income. The amount of credit you get when you file your return can depend on whether you have children, dependents, or a disability. But you might still be able to get the EITC even if you don’t have a child who qualifies.