County of San Diego Health and Human Services Agency HHSACalWORKsCalFreshMediCalGeneral ReliefCash Assistance Program forImmigrantsCounty Medical ServicesProgram Guide Special Notice Earned Income Tax Credit Outreach Number Page CW 2302 CF 2303 MC 2301 GR 2301 CAPI 2301 CMS 2301 1 of 6 Effective Date February 1 2023 BackgroundSan Diego Countys Earned Income Tax Credit EITC campaign continues to provide services annually These materials are provided to supplement EITC outreach efforts and are revised to reflect changes each tax year PurposeThe purpose of this Special Notice is to provide revised federal EITC California EITC CalEITC as well as other tax credit income limits maximum credit amounts and their impact on selfsufficiency programs This material also provides resources to assist customers to access tax credits they are potentially eligible for Policy Age and General EITC Eligibility California tax filers may qualify for either federal andor state EITC depending on their income age and number of children Refer to Appendix A for income limits and credit amounts Federal EITC Eligibility Must have earned income and adjusted gross income within certain limits but must be at least 1 Must meet certain basic rules For example have a valid Social Security Number SSN Must meet qualifying child rules if any dependent children are claimed Must live in the United States for more than half the tax year Claiming the federal EITC requires the Schedule EIC form available on the EITC webpage or by calling the Internal Revenue Service IRS at 8008291040 CalEITC Eligibility CalEITC is available to qualified tax filers ages 18 to 65 without qualifying children or any age with qualifying children Must have an SSN or an Individual Tax Identification Number ITIN for undocumented individuals Must have earned income and adjusted gross income of at least 1 and less than 30000 Must meet certain Internal Revenue Service IRS basic rules such as having an SSN or ITIN Must meet qualifying child rules if any dependent children claimed Must live in California for more than half the tax year Claiming the CalEITC requires the FTB 3514 form available on the CalEITC website or by contacting the Franchise Tax Board by phone at 8008525711 Note California taxpayers may qualify for state credits even if they do not qualify for federal credits County of San Diego Health and Human Services Agency HHSACalWORKsCalFreshMediCalGeneral ReliefCash Assistance Program forImmigrantsCounty Medical ServicesProgram Guide Special Notice Earned Income Tax Credit Outreach Number Page CW 2302 CF 2303 MC 2301 GR 2301 CAPI 2301 CMS 2301 2 of 6 New Foster Youth Tax Credit FYTC Eligible current and former foster youth who file their California state tax return and claim the FYTC will receive up to 1083 in tax credits The credit amount is adjusted for inflation annually and phases out gradually as income rises above 25000 The FTYC is awarded per eligible individual An individual may qualify for FYTC if they meet all the following criteria Qualify for the CalEITC Were ages 18 through 25 at the end of the 2022 tax year Were in foster care at age 13 or older and placed through the California foster care system Expanded Young Child Tax Credit YCTC The YCTC has been expanded for the 2022 tax year The YCTC increased to 1083 per family Families must have at least one child under six years old at the end of the tax year and must file a California state tax return and meet the requirements of the CalEITC Beginning in the 2022 tax year taxpayers do not need to have earned income to be eligible if they otherwise meet CalEITC requirements If filing for prior years customer must have at least 1 of earned income to qualify Procedure Free Tax Preparation Services Free tax preparation services are available for low to moderate income individuals Customers can call 211 for more information Customers can also log on to https211sandiegoorg httpswwwmyfreetaxesorg MyFreeTaxescom is operated by United Way Worldwide and offers free state and federal tax preparation and filing services For the 2022 tax year tax filers will have the option to choose to file By Myself With Assistance or Im Not Sure Based on their request the information will be routed to the appropriate tax preparation model through a virtual assistant software or inperson drop off Services are free for households with earnings less than 60000 for in person help or 66000 or less if filing with virtual help httpswwwgetyourrefundorgen For the 2022 tax year United Way has partnered with Code for America to provide virtual free tax credit services with IRS certified volunteers for household with earnings less than 66000 httpswwweitcirsgov httpswwwirsgov wwwftbcagovcaleitc httpswwwscocagoveovitahtml The IRS Volunteer Income Tax Assistance VITA Program offers free tax assistance to households with income of 60000 or less For the 2022 tax year these services will be predominantly virtual or will require an appointment due to the COVID19 pandemic EITC Postcards The County of San Diegos Community Action Partnership CAP and local nonprofit agency Dreams for Change will coordinate distribution of EITC postcards and virtual EITC presentations to various County of San Diego Health and Human Services Agency HHSACalWORKsCalFreshMediCalGeneral ReliefCash Assistance Program forImmigrantsCounty Medical ServicesProgram Guide Special Notice Earned Income Tax Credit Outreach Number Page CW 2302 CF 2303 MC 2301 GR 2301 CAPI 2301 CMS 2301 3 of 6 Family Resource Centers FRCs and Employment Services ES sites as requested Postcards see Appendix B will be distributed to ES Refugee Employment Services RES Public Health Clinics City and County libraries schools and Child Care contractors In addition a flyer Appendix A containing postcard information with VITA site locations and phone numbers is being distributed via SMS message to CalWORKs CalFresh and MediCal customers and is available on the sandiegocountygov website These EITC publications Strengthen state and county efforts to promote the EITC to our customer population Target families and individuals who qualify for EITC Educate and assist families on how to access EITC FRC ES RES and Child Care Staff Action FRC and contracted staff will distribute these postcards to customers at all contacts and encourage them to contact 211 to receive free assistance to file their taxes and claim EITC and other tax credits available to them If additional postcards are needed FRCES Managers or their designees may contact the Community Action Partnership at 619 3382799 ImpactsCalWORKs and CalFresh Income Federal and state EITC payments whether received as advanced payments or as a single payment are exempt as income in determining CalWORKs and CalFresh eligibility or benefits level CPG 44 100H2 CFPG 63224 63224 Resource EITC payments and refund payments are exempt resources for 12 months starting with the month that the payment is received CPG 44100H2 CFPG 63203 63204 MediCal Income EITC payments received as tax refunds or advanced payments are exempt from consideration as income MPG 100201 and Desk Aid 56 MAGI Income and Deduction Types Resource Actual EITC payments are exempt property in the month following the month of receipt MPG 090601M General Relief GR Income County ofSan Diego Health and Human Services Agency HHSACalWORKsCalFreshMediCalGeneral ReliefCash Assistance Program forImmigrantsCounty Medical ServicesProgram Guide Special Notice Number Page CW 2302 CF 2303 MC 2301 4 of6 Earned Income Tax Credit Outreach GR 2301 CAPI 2301 CMS 2301 General Relief considers EITC payments as unearned income in the month received GRPG 904005F If a customer received General Relief during 2022 and the customer receives EITC the case must be reviewed for potential unreported earned income since EITC is for earned income Resource Any portion of the refund retained by the customer in the month following receipt is considered personal property GRPG 904005F Cash Assistance Program for Immigrants CAPI Income CAPI exempts EITC from consideration as income in the month received CAPI PG 991032B Resource CAPI exempts EITC as a resource for 12 months following the month of receipt CAPI PG 991044B County Medical Services CMS Income CMS exempts EITC as income in the month received CMSPG 060102A Resource Any portion of the refund retained by the beneficiary in the month following receipt is considered exempt personal property CMSPG 060403H Automation On the Collect Unearned Income Detail window Type field select Earned Income Tax Credit actual money received as earningsrefund fromthe dropdownmenu CalWIN will count thisentry as countable income for the General Relief program and will exempt as income for the CalWORKs CalFresh MediCal CAPI and Refugee Cash Assistance References All County Information Notice No I8722 Sunset Date This policy will be reviewed for continuance by February 29 2024 Approval for Release Rick Wanne Director SelfSufficiency Services