Tax Credits Toolkit
MCAH created this toolkit for local agencies and public health professionals to promote federal and state tax credits.
What is a Tax Credit?
A tax credit is an amount of money that reduces the tax you owe. It's like a discount on your tax bill, and it can sometimes even lead to a refund.
What are the Earned Income Tax Credits?
There are state and federal Earned Income Tax Credits (EITCs). EITCs help working individuals and families get a tax break. If you have earned income and qualify, EITC may provide you with cash back or reduce any tax you owe!
The California Earned Income Tax Credit (CalEITC) is a tax credit for working Californians. Some individuals and families may also qualify for the federal EITC in addition to CalEITC. Review the Tax Credits Basic Eligibility section see if you qualify.
What are the Child Tax Credits?
There are state and federal Child Tax Credits. These tax credits can help families with qualifying children receive a tax break. If you live in the State of California, you may be eligible for the Young Child Tax Credit (YCTC) in addition to the federal Child Tax Credit. Your eligibility depends on your income, the child's age, how you are related to the child, and other factors.
Learn more about the Child Tax Credits here.
Tax Credits Basic Eligibility
Below is a snapshot of tax credit eligibility for state and federal tax credits. For more information regarding qualification, please visit
Earned Income Tax Credit (IRS) and
What is the EITC? (CalEITC4Me).
California Earned Income Tax Credit (CalEITC)
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You're at least 18 years old or have a qualifying child.
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Your income must be between $1 and $31,950.
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You have an ITIN or an SSN.
Federal Earned Income Tax Credit
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Your income must meet specific limits. Check your eligibility using the
IRS's Interactive Tax Assistant.
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You must have a valid SSN.
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You're a U.S. citizen or resident alien all year.
California Young Child Tax Credit
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Child must be under the age of 17.
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Qualifying child can be a son, daughter, foster child, brother, sister, stepbrother, stepsister, or a descendent of any of them.
Frequently-Asked Questions
How can I claim these credits? |
When you file your taxes, you will also need to fill out the California Earned Income Tax Credit Form 3514. |
You just need to file your federal taxes. No additional form is needed. |
What if I need help filing my taxes? |
You may be able to get free tax help through the Volunteer Income Tax Assistance (VITA) program. VITA is available for people with household incomes up to $67,000, people with disabilities, and taxpayers who speak little to no English. |
You may be able to get free tax help through the Volunteer Income Tax Assistance (VITA) program. VITA is available for people with household incomes up to $67,000, people with disabilities, and taxpayers who speak little to no English. |
What if I have an ITIN instead of a Social Security Number? |
That's OK. Californians who file their taxes with an Individual Taxpayer Identification Number (ITIN), including undocumented Californians, can qualify for the CalEITC and YCTC. |
Please note, people with ITINs are not eligible for the federal tax credits. You will need a Social Security Number (SSN). |
How can I find out how much extra cash I will receive through these tax credits? |
The amount you get depends on your household status, income, and family size.
For California tax credits, you can visit
caleitc4me.org/earn-it to get an estimate of how much you will get back.
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The amount you get depends on your household status, income, and family size.
For federal tax credits, you can visit
bit.ly/IRS-earn-it to get an estimate of how much you will get back.
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I don't need to file my taxes. Can I still be eligible for the tax credits? |
Even if you aren't required to file your taxes because your income is below the threshold, you may still benefit from these tax credits, but you will need to file your taxes. |
Even if you aren't required to file your taxes because your income is below the threshold, you may still benefit from these tax credits, but you will need to file your taxes. |
If I'm a student and my parents claim me as a dependent on their taxes, am I eligible for EITC? |
No. If your parents claim you as a dependent, you're not eligible for these credits. |
No. If your parents claim you as a dependent, you're not eligible for these credits. |
Will my benefits (such as CalWORKs, CalFresh, or disability) count as income? |
No. Claiming tax credits will not affect the income you claim to receive any other public benefits. Tax credits like the CalEITC and federal EITC aren't considered public benefits under the U.S. Citizenship and Immigration Services public charge rule. |
No. Claiming tax credits will not affect the income you claim to receive any other public benefits. Tax credits like the CalEITC and federal EITC aren't considered public benefits under the U.S. Citizenship and Immigration Services public charge rule. |
If I'm protected by the Deferred Action for Childhood Arrivals (DACA) program, am I eligible for EITC? |
Yes, if you meet the other qualifications. If you participate in DACA and have a valid SSN, you can use that number to claim any of these credits. If you have not applied for a SSN, but have an ITIN, you can use an ITIN to claim the California state tax credits. |
Yes, if you meet the other qualifications. If you participate in DACA and have a valid SSN, you can use that number to claim these credits.
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Why Tax Credits?
Tax credits help put more money into the pockets of working families. This is important for several reasons:
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Supports Families and Children: Tax credits can be used to meet essential needs like food, housing, and health care. EITC refunds are not considered income for CalWORKs, CalFresh, Medi-Cal, or other public benefits. This ensures families receive the full benefit of the credit without risking their access to essential services. This is important for families with children, leading to better health and educational outcomes.
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Encourages Work: Tax credit incentives work by increasing the after-tax income of those who are employed. This helps encourage individuals to stay employed.
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Reduces Poverty: The additional income from tax credits lifts millions out of poverty, reducing economic struggles. In fact, the EITC is one of the largest anti-poverty initiatives in the United States, aiding low- to moderate-income working families by reducing their tax liability, often resulting in additional income.
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Economic Stimulus: Tax credits boost spending by putting more money into the hands of families and stimulating economic activity.
Despite its benefits, millions of eligible families fail to claim the EITC each year, missing out on substantial financial support.
For Professionals: Using Public Health to Boost Tax Credit Participation
As public health professionals, you often work closely with populations who would benefit most from tax credits. You can help increase participation in the following ways:
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Promote Tax Assistance Programs: Encourage the use of Volunteer Income Tax Assistance (VITA) programs, which provide free tax help to individuals. These programs can ensure that eligible participants claim their tax credits. Visit
the VITA Locator to find locations.
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Education and Outreach: Inform communities about tax credits during tax season through social media, email newsletters, and other digital platforms. Distribute brochures and flyers that explain the different types of tax credits in simple terms. Make sure all materials are credible and available in multiple languages to reach diverse audiences.
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Host Workshops and Information Sessions: Organize workshops and information sessions specifically focused on the tax credits, especially the EITC. These can be held at community centers, health clinics, and other accessible locations.
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Integrate Tax Credit Information into Program and Health Visits: Train health care providers and program staff to inform patients and participants about tax credits during routine visits.
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Build Trust: Establish trust within communities by consistently providing reliable information and support. Sharing success stories can be a powerful way to build credibility and encourage participation.
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Monitor and Evaluate Efforts: Continuously monitor and evaluate the effectiveness of these strategies. Collect feedback from participants and adjust the approach as needed to improve outreach and participation.