Claim Your Earned Tax Credit

It’s tax season. I wanted to highlight the Earned Income Tax Credit (EITC) programs, which provide tax refunds to millions of lower-wage workers and their families. Both the state and federal governments each administer one to help struggling workers with potentially sizeable tax refunds.

California’s version, CalEITC, is considered one of the most effective tools to help lift people out of poverty, putting thousands of dollars into the pockets of folks who need it the most. If you earned less than $30,950 last year (2023), your check could be as much as $3,529, depending on the size of your household.

There’s another $1,117 available on top of the CalEITC for each of the following:

• Young Child Tax Credit (YCTC): Families with young children under the age of 6.

• Foster Youth Tax Credit (FYTC): 18 to 25 year olds placed in the foster care system when they were age 13 or up.

For the 2022 tax year, nearly 3.5 million Californians were able to claim CalEITC, YCTC, and/or FYTC, putting more than $1.3 billion back in their wallets. There is also the federal EITC, which can boost tax refunds even higher. Together, the combined cash back from both programs can be life-changing – sometimes more than $12,000 for households with three or more children.

During the years I was chair of the Assembly Budget Committee, I fought to expand the program, raising the income limit for CalEITC because I knew how impactful a tax credit can be. I also pushed for the inclusion of young adults, seniors aged 65 and above with no dependents, and self-employed workers.

The Legislature also acted to make Individual Taxpayer Identification Number (ITIN) holders eligible to claim this state tax credit. These refunds not only raise the quality of life, but also stimulate the local economy when EITC tax refunds are spent.

Unfortunately, not everyone eligible to claim the CaIEITC does so, leaving millions of dollars on the table. The key to getting this cash back is to file a tax return. Many people miss out on EITCs because they don’t typically earn enough money to have to file a tax return, or they don’t owe taxes. But the paperwork is necessary to receive an EITC check.

The money could be used to pay bills or meet everyday expenses. It can also be put into a saving account for emergencies, something that families living paycheck to paycheck can do. The tax credit also has proven longterm benefits. Research shows children whose families receive an EITC refund perform better in school and have better health outcomes. Now, that’s a great investment!

Are you or someone you know missing out? Nonprofits operating Volunteer Income Tax Assistance (VITA) programs can connect people with free tax preparation services. While the tax deadline is April 15, filing as soon as possible means you can get your money back sooner.

For more information, please visit: www.CalEITC4me.org. You can find out if you qualify, the nearest location providing free tax assistance, or how to file a return yourself. While you’re inquiring about CalEITC, you can also ask about the federal Earned Income Tax Credit.

Phil Ting represents the 19th Assembly District, which includes the west side of San Francisco along with the communities of Broadmoor, Colma and Daly City as well as part of South San Francisco.