Earned Income Tax Credit Information & Free Tax Preparation

With tax season now in full swing, Butte 2-1-1 is helping working families in Butte County get the information and assistance they need to get the most out of their returns.

2-1-1 is helping connect working families and individuals to free tax preparation assistance and providing information about the Federal and State Earned Income Tax Credit that often times goes unclaimed. Call 2-1-1 to find the free tax preparation site nearest you.

What is the Federal Earned Income Tax Credit?

EITCimmage

The Earned Income Tax Credit, sometimes called EITC or EIC is a benefit for working people who have low to moderate income from working for someone else or running or operating their own business.

EITC is a tax credit to help people keep more of what they have earned. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. More information about EITC is available at the IRS’s website. 

Who is eligible to claim the Earned Income Tax Credit?

Families and individuals whose adjusted gross income was less than $53,505 in 2016 may qualify for the Earned Income Tax Credit and could receive larger refunds. It can mean up to $503 in EITC for people without children, and up to $ $6,242 for families with three or more qualifying children. See the chart bellow for specific income limits and maximum credit.

2016 Adjusted Gross Income (AGI) limits for Earned Income Tax CreditEITC chart

Who is a qualifying Child?

Relationship

  • Your son, daughter, adopted child, stepchild, foster child or a descendant of any of them such as your grandchild.
  • Brother, sister, half-brother, half sister, stepbrother, stepsister or a descendant of any of them such as a niece or nephew

Age

  • At the end of the filing year, your child was younger than you (or your spouse if you file a joint return) and younger than 19
  • At the end of the filing year, your child was younger than you (or your spouse if you file a joint return) younger than 24 and a full-time student
  • At the end of the filing year, your child was any age and permanently and totally disabled

Residency

  • Child must live with you (or your spouse if you file a joint return) in the United States for more than half of the year

What is the State Earned Income Tax Credit (CalEITC)?

CalEITC is a cash back tax credit that puts money back into the pockets of California’s working families and individuals.  The CalEITC could boost income for an estimated 600,000 eligible families and individuals.

Who is eligible for CalEITC?

You may be eligible for the CalEITC if:

  • You have earned income (not from self employment) within certain limits
  • You, your spouse, and any qualifying children (same guidelines as Federal EITC) each have a social security number (SSN)
  • You do not use the “married/RDP filing separate” filing status
  • You lived in California for more than half the tax year

Review the chart below to see if you may be eligible

Flow chart of who is eligible for CalEITC

Call 2-1-1 today for more information about EITC and to find free tax preparation assistance!

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