CDSS has notified counties about changes to the federal and state Earned Income Tax Credit (EITC) programs. The maximum income and credit limits for federal EITC has increased for the 2017 tax year. CDSS’ notice includes a table of the 2017 tax year maximum income and credit limits.
The California EITC is expanded to increase the income limit and to allow self-employment income to be eligible for the California EITC starting in the 2017 state tax year. CDSS’ notice includes a table of the California maximum income and credits for the 2017 tax year.
EITC payments are exempt from consideration as income when determining CalWORKs eligibility and grant levels. EITC payments are permanently excluded as income when determining eligibility and grant amounts for CalWORKs and CalFresh.
EITC payments are exempt from resource consideration for CalWORKs and CalFresh for 12 months starting with the month of receipt of payment. Counties are encouraged to inform CalWORKs recipients that EITC payments are exempt from consideration as property for 12 months so that they do not need to spend down the EITC payment to maintain CalWORKs eligibility. (ACL 17-120, December 5, 2017.)