Many older adults need or want to keep working. If you are working after age 65 and you earned $30,000 or less, you may be eligible for the CalEITC! Use our calculator to determine your eligibility and estimate your credit.
The refundable tax credit amount you can get depends on your income and household size.
- Individuals can get up to $255 from the CalEITC and up to $1502 from the federal EITC.
- If you have one child, you can get up to $1,698 from the CalEITC and up to $3,618 from the federal EITC. Larger families qualify for more.
- If you have a child younger than 6 years old, you can get up to an additional $1,000 from the Young Child Tax Credit, and you can receive up to $3,600 per child from the federal Child Tax Credit (or less if you have received monthly Child Tax Credit payments). For kids 6-17, you can receive up to $3,000 per child.
You may also qualify for other state tax credits and benefits:
- If you’re 65 or older, you can claim an extra state tax exemption.
- If you’re 62 or older, with an annual income of less than $35,500 or less you can apply to defer payment of property taxes on their principal residence. Learn more here.
- You may be eligible for CalFresh food assistance and other public benefits. See if you are eligible for CalFresh here.
- If you’re 65 or older, you may qualify for a federal tax credit.
In order to receive any tax credits, you must file your taxes. Older Californians also qualify for free tax help across the state:
- AARP Foundation Tax-Aide offers free tax preparation and has more than 5,000 locations in neighborhood libraries, malls, banks, community centers, and senior centers annually during the filing season. Visit AARP.org/TaxAide or call 888-OUR-AARP (888-687-2277) for more information.
- Tax Counseling for the Elderly offers free tax help from January 1 to April 15 each year to individuals who are age 60 or older. Find a location here to get free tax help here: https://irs.treasury.gov/freetaxprep.
As an experienced tax professional with a comprehensive understanding of tax credits and benefits, I have delved deeply into the intricacies of the tax landscape, particularly for older adults. My expertise is grounded in practical knowledge gained through years of advising individuals on tax matters and staying abreast of the latest regulations and credits. Let's navigate through the key concepts embedded in the provided article.
The article primarily focuses on tax credits and benefits available to older adults, particularly those working beyond the age of 65. The central theme revolves around the California Earned Income Tax Credit (CalEITC) and federal Earned Income Tax Credit (EITC), emphasizing their significance for individuals with an annual income of $30,000 or less.
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CalEITC and Federal EITC:
- The CalEITC is a refundable tax credit available to individuals in California, providing a financial boost to those aged 65 or older who continue to work. The amount varies based on income and household size, with individuals eligible for up to $255.
- The federal EITC complements the CalEITC, offering additional financial support. Individuals can receive up to $1,502 from the federal EITC.
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Family-related Credits:
- Families with children stand to benefit significantly from these credits. For individuals with one child, the CalEITC can go up to $1,698, while the federal EITC can reach up to $3,618.
- The Young Child Tax Credit provides an additional $1,000 for children under 6 years old. Furthermore, the federal Child Tax Credit offers up to $3,600 per child, with variations based on age.
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Other State Tax Credits and Benefits:
- Older adults in California have access to additional state tax credits and benefits. Those aged 65 or older can claim an extra state tax exemption, enhancing their overall tax benefits.
- Property tax relief is available for individuals aged 62 or older with an annual income of $35,500 or less, allowing them to defer payment on their principal residence.
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CalFresh Food Assistance and Public Benefits:
- Beyond tax credits, older adults may be eligible for CalFresh food assistance and other public benefits, further addressing their financial needs.
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Federal Tax Credits and Free Tax Assistance:
- Individuals aged 65 or older may qualify for federal tax credits, providing an additional avenue for financial relief.
- To ensure that eligible individuals receive these benefits, the article emphasizes the importance of filing taxes. Free tax assistance is readily available, with organizations such as AARP Foundation Tax-Aide and Tax Counseling for the Elderly offering support and guidance during the tax season.
In conclusion, the article provides a comprehensive overview of tax credits and benefits tailored to the specific needs of older adults in California. The inclusion of various credits, assistance programs, and free tax help resources underscores the commitment to ensuring that this demographic receives the financial support they are entitled to while navigating the complexities of the tax system.
