Earned Income Tax Credit (EITC)

What is Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit, EITC, is a benefit for working people with low to moderate income. Those who qualify for EITC and claim the credit could pay less tax, pay no tax or even get a tax refund based on your income and family size qualifications. 

Do I Qualify for EITC?

To qualify for EITC, you must have earned income from working for someone or from running or owning a business or farm and meet basic requirements. Married taxpayers must file jointly to qualify for this benefit. You don’t need to have a child to claim EITC. 

For more in-depth information about EITC eligibility requirements, please visit the IRS site. You can also check Do I qualify for EITC to see if you are eligible for EITC.

Find out how much you can get back, please use CalEITC4Me Calculator.

How can I claim EITC?

You must file a Federal tax return in order to claim the EITC. Even if you do not owe any tax or are not required to file, you may also claim the EITC and ask for a refund. For more information about how to claim EITC, please visit the IRS site .

Get credit going back 3 years

You can still file your tax returns for 2016, 2017 and 2018 to claim EITC if you were eligible. But you must file to claim it! Find out more here.

Free Tax Filing Assistance

You can book an appointment for free tax-filing service at PACE VITA to prepare your tax return and claim the EITC if you qualify.

What are the Impacts of EITC?

Nationwide during 2019, 25 million people received about $63 billion in EITC. The average amount that the taxpayers received was more than $2,400 to help pay their other expenses. EITC can increase a federal tax refund up to $8,000 for qualified taxpayers. IRS estimates 80% of eligible taxpayers claim and get this important credit.

Most people who qualify for the federal EITC, also qualify for CalEITC. 3.7 million Californians who earn little from their jobs benefited from the CalEITC this past tax season. 

CalFTB estimates 400,000 families will qualify for the new Young Child Tax Credit. That means an additional $1,000 in the pockets of low earning families with young kids. A family of 3 could see their income double with Cal EITC and new YoungChildTaxCredit, together with federal credits. CalEITC and EITC effectively help boost our local economy.

Read more about the positive impacts of EITC here.

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