800-929-9213
If you are a household employer in California, when you and your employee(s) file your 2015 state and federal tax returns, you or your employee may be eligible to claim a new state tax credit called the California Earned Income Tax Credit (CalEITC). If you owe taxes, the Cal EITC reduces the amount of taxes you might owe and may allow you a refund when you file your taxes. If you do not owe taxes, the Cal EITC tax credit will provide you with a tax refund when you file your taxes.
This credit is modeled off the existing federal tax credit that gives money back to working families. The amount of the tax credit is dependent on income and family size but could be as much as $6,000.
This credit is available to California households with adjusted gross incomes of less than $6,580 if there are no qualifying children, less than $9,880 if there is one qualifying child, or less than $13,870 if there are two or more qualifying children.
You qualify for Cal EITC if:
- You have wages and adjusted gross income within certain limits, AND
- You, your spouse, and any qualifying children each have a social security number issued by the Social Security Administration that is valid for employment, AND
- You do not use the “married/RDP filing separately” filing status, AND
- You lived in California for more than half the tax year.
To estimate what your credit would be, view the 2015 Earned Income Tax Credit Table, or use the CalEITC4Me online calculator.
To claim the credit, you will need to file a California income tax return and complete an FTB 3514, Earned Income Tax Credit form (FTB 3514 Instructions).
Find more information here, and contact GTM at (800) 929-9213 if you have any questions about how this credit may affect your household employer taxes, or how to help your employee(s) claim the credit if they qualify.
Source: CA Franchise Tax Board
