Now more than ever, we want to make sure County residents are financially prepared to navigate through emergencies like COVID-19. As you continue to take steps to preserve your health and safety during the pandemic, please remember to file your income tax return and take advantage of the Earned Income Tax Credit and other refundable tax credits. Here’s some helpful information:
A timely refund could make all the difference in these uncertain times. Both the federal and state deadlines to file and pay taxes have been delayed to July 15, 2020, however, you may want to file now to ensure that you receive the COVID-19 federal stimulus payment.
If you are not planning to file your taxes this year, at least make sure you receive the recovery rebate. The IRS has developed a non-filer tool (look for blue button stating Non-filers: Enter Payment Info Here) for those who do not have an obligation to file a return. This includes eligible U.S. citizens or permanent residents who had gross income that did not exceed $12,200 ($24,400 for married couples) for 2019. For more information, see the Consumer Financial Protection Bureau’s page on Economic Impact Payments.
However, even if you were not required to file taxes, you could still be eligible for credits, which means cash back into your pocket. So when in doubt, file your taxes today for free!
There are several free web-based tax preparation options that you can use from the comfort of your home including MyFreeTaxes.org, operated by United Ways of California. This platform allows users to file at no cost. After setting up a username and password, the platform walks users step by step through the process, claiming all credits for which they are eligible.
Having that refund delivered through direct deposit is the fastest way to access these funds. If you do not have a bank account, Bank On Los Angeles County can help you access affordable banking options. You can get started here or check out our Fact Sheet here.
Each year, millions of refundable tax credit dollars go unclaimed in L.A. County because people don’t file an income tax return or fail to claim all the credits they are entitled to. Get your money back! You earned it!
Visit our website for more COVID-19 related resources and call us at (800) 593-8222 with your questions.
EITC Tax Credit Can Put Money in Your Pocket!
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a credit for people who work that may give you money back at tax time or lower the federal taxes you owe. You can claim the credit whether you’re single or married, have children or not. The main requirement is that you must earn money from a job. The EITC may lower the taxes you owe and refund you up to $6,557 at tax time.
California Earned Income Tax Credit (CalEITC)
Similar to the federal EITC, the CalEITC is a refundable tax credit that puts money back into the pockets of California workers. You may qualify for up to $2,982.
Young Child Tax Credit (YCTC)
The YCTC is a new credit that could mean up to $1,000 additional in your refund for parents with at least one child younger than age 6 as of Dec. 31, 2019
Who’s eligible
The credit amounts depend on your income, marital status, and family size. Here’s a general breakdown of the Federal EITC eligibility courtesy of the Get It Back Campaign:
| Number of children: | Single workers with income less than: | Married workers with income less than: | EITC up to: |
| 3 or more children | $50,162 | $55,952 | $6,557 |
| 2 children | $46,703 | $52,493 | $5,828 |
| 1 child | $41,094 | $46,884 | $3,526 |
| No children | $15,570 | $21,370 | $529 |
Click here for additional information on CalEITC and YCTC eligibility. Combined, some people may be eligible for up to $8,000.
