The rising cost of living has made it difficult for low-wage workers to make ends meet. However, programs like Earned Income Tax Credits (EITCs) are available to help ease the financial burden of struggling families.
In California, the CalEITC and Young Child Tax Credit (YCTC) have proven to be effective in putting thousands of dollars into the pockets of those who need it the most. According to the State of California Franchise Tax Board, Californians who are eligible for CalEITC and have a child under 6 years old can receive a credit of up to $1,083 per tax return through the Young Child Tax Credit (YCTC). A new Foster Youth Tax Credit has been introduced for those aged 18-25 who were placed in the foster care system when they were 13 or older.
How to receive the cashback
Filing a tax return is necessary to receive the cashback from Earned Income Tax Credits, but many eligible individuals do not do so, leaving millions of dollars on the table. The combined cash back from federal and state EITCs can be life-changing for households with three or more children, sometimes exceeding $10,000.
There are free tax preparation services available through nonprofit organizations operating Volunteer Income Tax Assistance (VITA) programs. Filing a tax return as soon as possible can ensure that you receive your money back faster, which can help pay bills, meet everyday expenses, or be put into savings for emergencies. Research has also shown that children whose families receive an EITC refund perform better in school and have better health outcomes, making it a great investment.
In conclusion, claiming your Earned Income Tax Credit can make a significant difference in your financial situation. Take advantage of the CalEITC, YCTC, and Foster Youth Tax Credit, and file a tax return to receive the cash back you deserve. Connect with free tax preparation services through VITA programs, and put the money towards bills, savings, or investments in your children’s future.
