Tax season is here and many families filing taxes this year can take advantage of tax credits. The different tax credits for families listed here include various income brackets.
Child Tax Credit
Parents with children under age 17 can reduce their tax burden by up to $2,000 per qualified dependent. This includes your own children, stepchildren, or related child who lives with you at least half the tax year.
The Young Child Tax Credit provides up to $1,154 per eligible tax return for tax year 2024. Unlike other tax credits, this one is refundable meaning filers can receive its full value even if it exceeds their taxes owed. For example, you owe $200 in taxes but could receive $800 back from a $1,000 credit.
California families earning $31,950 or less qualify for this credit. You also must have a qualifying child under 6 years old at the end of the tax year and qualify for CAL Earned Income Tax Credit (EITC).
Earned Income Tax Credit
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.
The IRS uses your Adjusted Gross Income (AGI) to calculate eligibility for many tax credits.
For 2024:
You must have an AGI below the following levels to qualify for the EITC with:
- three or more qualifying children, $59,899, or $66,819 if Married Filing Jointly
- two qualifying children, $55,768, or $62,688 if Married Filing Jointly
- one qualifying child, $49,084 or $56,004 if Married Filing Jointly
- no qualifying children, $18,591 or $25,511 if Married Filing Jointly
The maximum credit you can receive also varies based on the number of qualifying children you have. For 2024, the following maximums are in place:
- $8,260 with three or more qualifying children
- $6,960 with two qualifying children
- $4,213 with one qualifying child
- $632 with no qualifying children
Elderly Tax Credit
This credit applies to those earning below the eligible threshold and who are either age 65 or older at the end of the year, or have retired on total and permanent disability and have taxable disability income.
If your AGI is equal to or more than the following limits, you cannot qualify for this credit:
- $17,500, if file as Single, Head of Household, or Qualifying Surviving Spouse with qualifying child
- $20,000, if file as Married Filing Jointly and only one spouse otherwise qualifies
- $25,000, if file as Married Filing Jointly with both spouses qualifying
- $12,500, if file as Married Filing Separately and lived apart from your spouse for the entire year
According to Turbotax, you also cannot take this credit if your nontaxable social security or nontaxable pension, annuity or disability income exceeds certain limits. Those limits are $5,000 for the first two filing categories above, $7,500 for the third category, and $3,750 for the final group.
Wildfire Tax Breaks
Another tax credit for families supports those impacted directly by the Los Angeles County wildfires in early 2025. You may qualify for certain tax breaks. Grants between $6,000-$18,000 per household, depending on household size, are available. Click here to learn more.
Residents of Los Angeles County, the deadline to file has been extended to October 15th due to the January wildfires.
Free Tax Preparation Services and other Resources
The Volunteer Income Tax Assistance (VITA) Program offers free income tax preparation/assistance to taxpayers whose gross income is $60,000 a year or less.
Find a location near you and make an online appointment – LA County website, San Bernardino County website.
- CalEITC4Me
- Prosper California (formerly CalEITC)
- End Child Poverty California
