$1200 income tax credit in California: who qualifies?

The Golden State’s new $9.6 billion relief package will benefit those who file their taxes with an Individual Taxpayer Identification Number (ITIN).

$1200 income tax credit in California: who qualifies?

Last week, Governor Gavin Newsom announced an agreement for a $9.6 billion Golden State Stimulus plan which will provide direct financial relief to Californian households who have been hit hardest by the economic fallout of the Covid-19 pandemic. That agreement has since been passed into law – the Immediate Action Agreement will provide 5.7 million one-time payments to low-income Californians, as well as those who were unfairly excluded from previous federal stimulus payments. It will also increase aid to small businesses and provide license renewal fee waivers to businesses impacted by the pandemic.

Households earning less than $75,000 to receive $600 payments

Californians who file taxpayers file their taxes with an Individual Taxpayer Identification Number (ITIN) as opposed to a Social Security number, who were excluded from receiving a first federal stimulus check of up to $1,200, or a second federal stimulus check of up to $600. Residents who also qualify for the California Earned Income Tax Credit (CalEITC) will receive a total of $1,200. CalEITC is a refundable cash back tax credit for qualified low-to-moderate income workers in California. The amount of CalEITC you may get depends on your income and family size. To qualify, you must:

  • Be at least 18 years of age or have a qualifying child
  • Have taxable earned income within certain limits
  • Not use “married/RDP filing separate” if married
  • Have been resident in California for more than six months of the financial year

If you meet the criteria for CalEITC, you can find out how much you can expect to get back by using the EITC Calculator here. The payments will be provided to all eligible households after they file their 2020 tax returns. If you qualify for CalEITC and have a child under the age of six, you may also qualify for the Young Child Tax Credit.

The agreement broadens this initial plan and now provides direct relief to more low-income Californians through a $600 one-time grant to households enrolled in the CalWORKS program and recipients of SSI/SSP and Cash Assistance Program for Immigrants (CAPI). Grant payments for CalWORKS households are expected by mid-April; timing for the delivery of SSI/SSP and CAPI grants is currently under discussion with federal officials.