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Earned Income Tax Credit

What are Tax Credits?

There are two types of tax credits: nonrefundable credits and refundablecredits. 

Nonrefundable credits and those that can reduce your tax liability (what you owe) to zero, but any leftover amount is not refunded to the taxpayer. 

Refundable credits can reduce the tax bill to zero and any leftover amount would be refunded to the taxpayer. 

California Earned Income Tax Credit
(EITC)

Tax credit available for low to income working families and individuals. 

Maximum Income Limit: $31,950 

Maximum Credit Amount: $3,644 (based on income and number of qualifying children)​​

Young Child TaxCredit (YCTC)

Federal Child Tax Credit

  • Up to $2,000 per qualifying child, under the age of 17. 
  • Child must have a valid SSN
  • Child must be a US Citizen 
  • Child must be claimed as a dependenton tax return 

 

California Young Child Tax Credit

  • Up to $1154 per eligible tax return
  • Child must be under 6 years old
  • Qualify with earned income of $31,950 orless 
  • ITIN filers are also eligible

Foster Youth Tax Credit (FYTC)

  • Tax credit providing up to $1154 per eligible individual or up to $2308 if both primary taxpayer and spouse qualify. 
  • Must qualify for CalEITC to qualify for FYTC 
  • Between ages 18-25 at the end ofthe tax year. 
  • Were in foster care at the age of 13 or older and placed through California Foster Care System. 
  • Must be able to satisfy foster care verification requirement. 

ARE YOU SELF EMPLOYED?

The Self-Employed Tax Guide gives entrepreneurs information they need to  file their taxes and maximize their refunds using a free online software available through MyFreeTaxes. Visit www.myfreetaxes.com/selfemployed for more information.

Click here to learn about all of the credits our team will try to get for you.