While direct federal stimulus might have ended, certain residents of the United States can still access an amount of financial relief from federal and state tax credits. For instance, California residents can earn up to $12,000 combined benefits from different programs such as the Federal earned income tax credit (EITC), California Earned Income tax credit (CalEITC), the Young Child Tax Credit (YCTC) and many others.
The $12,000 figure is usually not a single check. It is a cumulative amount from various tax credits which aims at supporting low to moderate income families. This means that they are designed to give financial aid to families that are eligible, especially those with kids.
What tax programs can I get credit returns from?
A number of tax programs, state or federal level, offer financial relief to eligible Carlifornia residents. Some of these tax programs include:
1. California Earned Income Tax Credit (CalEITC)
The Carlifornia Earned Income Tax Credit (CalEITC) is a state-level tax program that offers financial relief to Carlifornia residents who are up-to-date on certain income and residency requirements. You may be eligible for a California Earned Income Tax Credit (CalEITC) up to $3,644 for tax year 2024 as a working family or individual earning up to $31,950 per year.
To be eligible for this tax credit, the criteria include:
- You must be a Carlifornia resident for more than half the year.
- You must have earned income of $31,950 or less.
- You must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- You must have filed a tax return even if you are not required to do so.
To claim the credit, you must file a California state tax return and include the appropriate forms.
2. Young Child Tax Credit (YCTC)
The Young Child Tax Credit (YCTC) provides up to $1,154 per eligible tax return for tax year 2024. It is an additional tax credit for those living in California and have a child under the age of six.
The criterias to be eligible for this credit include:
- You must be eligible for The California Earned Income Tax Credit (CalEITC)
- You must have earned income of $31,950 or less.
- You must have a qualifying child under the age of six at the end of the tax year.
- You must file a California tax return and include appropriate forms.
3. Child Adoption Tax Credit.
If you adopted a child in the United States, you can claim up to 50% of the cost. The adopted child must be a citizen of the United States and must have been under the custody of a California agency.
You qualify for this tax credit if you spent money on:
- Medical costs that are not covered by insurance
- Department of social services or licensed adoption agency fees
- Travel expenses.
You can get up to $2,500 per child in a tax year and you must file an income tax return.
4. Other State Specific Credits.
Besides the CalEITC, YCTC, there are other credits that California offers to its residents that can amount to $12,000 in benefits. They include:
- Foster Youth Tax Credit (FYTC): The FYTC provides up to $1,154 for eligible individuals aged 18 to 25 who were in foster care at age 13 or older and meet other criteria.
- Nonrefundable Renter’s Credit: The nonrefundable renter’s credit offers a credit for renters who meet certain income and residency requirements.
- Senior Head of Household Credit: Provides a credit for senior citizens who qualify as head of household.
To claim any of these benefits, you must file a 2024 tax return. Even if you are not required to file, filing a return is necessary to claim these credits.
