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UC Reminds Employees of Federal, State Earned Income Tax Credits

February 1, 2017

Tax season is here and the University of California is reminding employees that they might be eligible for federal or state Earned Income Tax credits.

Based on annual earnings, employees could be eligible for the Earned Income Tax Credit (EITC) from the federal government. EITC is a refundable federal income tax credit for low-income working individuals and families. The federal EITC has no effect on certain welfare benefits. In most cases, federal EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income, food stamps, low-income housing or most Temporary Assistance for Needy Families payments. Even if you do not owe federal taxes, you must file a federal tax return to receive the federal EITC. For information regarding eligibility — including information on how to obtain the IRS Notice 797 or any other necessary forms and instructions — contact the Internal Revenue Service by calling 800-829-3676 or visit the agency's website.

Employees also might be eligible for the California Earned Income Tax Credit (California EITC) starting with the 2015 tax year. The California EITC is a refundable state income tax credit for low-income working individuals and families. The California EITC is treated in the same manner as the federal EITC and generally will not be used to determine eligibility for welfare benefits under California law. To claim the California EITC, even if you do not owe California taxes, you must file a California income tax return and complete and attach the California EITC form (FTB 3514). For information on the availability of the credit, eligibility requirements, and how to obtain the necessary California forms and get help filing, contact the Franchise Tax Board at 1-800-852-5711 or through its website at www.ftb.ca.gov.