Added by Stats. 2007, Ch. 606, Sec. 1. Effective January 1, 2008.
This act shall be known and may be cited as the Earned Income Tax Credit Information Act.
Part 10.3 - EARNED INCOME TAX CREDIT INFORMATION ACT
California Revenue and Taxation Code — §§ 19850-19854
Sections (5)
Amended by Stats. 2023, Ch. 55, Sec. 8. (SB 131) Effective July 10, 2023.
The Legislature finds and declares as follows:
(a)Congress created the federal earned income tax credit (EITC) in 1975 to offset the adverse effects of the Medicare and social security payroll taxes on working poor families and to encourage low-income workers to seek employment rather than welfare.
(b)Due to a relatively low percentage of federal earned income tax credit eligible persons who participate in the federal Earned Income Tax Credit program, hundreds of millions of federal dollars go unclaimed by the working poor in California.
(c)In 2015, the State of California authorized a California EITC to amplify the poverty-reducing effects of the federal
EITC for the poorest working Californians.
(d)In order to alleviate the tax burden on working poor persons and families, to enhance the wages and income of working poor persons and families, to ensure that California taxpayers receive their share of the federal money available in the federal EITC program and other state and federal antipoverty tax credits, to ensure that the poorest working Californians access the additional California EITC, and to inject additional federal money into the California economy, the state shall facilitate the furnishing of information, as permitted by Section 19551.3, to working poor persons and families regarding the availability of the federal and California EITC so that they may claim those credits on their federal and state income tax returns.
(e)It is the intent of this act to offer the most cost-effective assistance to eligible taxpayers by
taking steps to ensure that eligible Californians claim both the federal and California EITC and other state and federal antipoverty tax credits and are aware of free tax preparation services through the following:
(1)Notices provided by their employers.
(2)Notices provided by state departments and agencies that serve those who may qualify for the EITC.
Amended by Stats. 2025, Ch. 231, Sec. 72. (SB 711) Effective October 1, 2025.
For purposes of this part, the following terms have the following meanings:
(a)“Employer” means any California employer who is subject to, and is required to provide, unemployment insurance to their employees, under the Unemployment Insurance Code.
(b)“Employee” means any person who is covered by unemployment insurance by their employer, pursuant to the Unemployment Insurance Code.
(c)“Federal EITC” means the federal earned income tax credit, as defined in Section 32 of the Internal Revenue Code.
(d)“California
EITC” means the California earned income tax credit, as defined in Section 17052.
(e)“State departments and agencies that serve those who may qualify for Voluntary Income Tax Assistance or state and federal antipoverty tax credits, including the federal and the California EITC” means the following departments and agencies:
(1)The State Department of Education with respect to information from the free or reduced-price meal program and National School Lunch Program.
(2)The Employment Development Department with respect to information from the California Unemployment Insurance program.
(3)The State Department of Health Care Services with respect to
information from the Medi-Cal program.
(4)The State Department of Social Services with respect to information from the CalFresh and CalWORKs programs.
(f)“State and federal antipoverty tax credits” means state and federal tax credits that are designed to alleviate poverty and tax burdens for low-income households.
(g)“Voluntary Income Tax Assistance” or “(VITA)” means the free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.
(h)“CalFile” means the Franchise Tax Board’s free, direct, online
program for taxpayers to complete and e-file their state personal income tax returns.
(i)Unless otherwise specifically provided, the terms “Internal Revenue Code,” “Internal Revenue Code of 1954,” or “Internal Revenue Code of 1986,” for purposes of this part, mean Title 26 of the United States Code, including all amendments thereto, as enacted on the specified date for the applicable taxable year as defined in paragraph (1) of subdivision (a) of Section 17024.5.
(j)The amendments made to this section by Section 2 of Chapter 294 of the Statutes of 2016 shall apply to notices required pursuant to Section 19853 furnished on or after January 1, 2017.
(k)The amendments made to this section by Section 9 of Chapter 55 of
the Statutes of 2023 shall apply to notices required pursuant to Section 19853 furnished on or after January 1, 2024.
Current Version
Amended by Stats. 2023, Ch. 277, Sec. 1. (AB 1355) Effective January 1, 2024. Repealed as of January 1, 2029, by its own provisions. See later operative version added by Sec. 2 of Stats. 2023, Ch. 277.
(a)(1) An employer shall notify all employees that they may be eligible for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California EITC, within one week before or after, or at the same time, that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee.
(2)An employer shall send a second notification to all employees during the month of March of the same year in which the employer notified employees pursuant to paragraph (1).
(b)(1) The state departments and agencies that serve those who may qualify for VITA or state and federal antipoverty
tax credits, including the federal and the California EITC, as defined in subdivision (e) of Section 19852, shall notify their program recipients that they may be eligible for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California EITC, at least once per year during the months of January through March, or, alternatively, shall provide both notifications during a regularly scheduled contact with a recipient by telephone, mail, or electronic communication, or by an in-person communication.
(2)State departments or
agencies that serve those who may qualify for VITA or state and federal antipoverty tax credits, including the federal and the California EITC, as defined in subdivision (e) of Section 19852, and that do not directly communicate with persons or households with persons who may qualify for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California EITC, may communicate indirectly through agencies, districts, or regulated entities that serve eligible persons or households with eligible persons.
(3)State departments or agencies that serve those who may qualify for VITA or state and federal antipoverty tax credits, including the federal EITC and the California EITC, as defined in subdivision (e) of Section 19852, are encouraged to develop the most effective method to provide notice to recipients of eligibility for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the
California EITC, as long as the notice contains substantially the same language as the notice described in Section 19854.
(c)(1) The employer shall provide the notifications required by subdivision (a) by handing them directly to the employee or mailing them to the employee’s last known address.
(2)Any notice created by the employer shall include substantially the same language as the notice described in Section 19854.
(3)The notification required by paragraph (2) of subdivision (a) may be sent electronically.
(d)The employer shall not satisfy the notification required by subdivision (a) by posting a notice on an employee bulletin board or sending it through office mail. However, these methods of notification are encouraged to
help inform all employees of VITA, CalFile, and state and federal antipoverty tax credit eligibility, including the federal and the California EITC.
(e)(1) Notwithstanding subdivisions (c) and (d), the employer may provide the notification required by paragraph (1) of subdivision (a) via email to an email account of the employee’s choosing in PDF, JPEG, or other digital image file type format, if an employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials.
(2)An employer may not discharge an employee or in any manner discriminate, retaliate, or take any adverse action against an employee who does not affirmatively, in writing or by electronic acknowledgment, opt into receipt of electronic statements or
materials.
(f)The amendments made to this section by Section 3 of Chapter 294 of the Statutes of 2016 shall apply to notices furnished on or after January 1, 2017.
(g)The amendments made to this section by
Section 10 of Chapter 55 of the Statutes of 2023 shall apply to notices furnished on or after January 1, 2024.
(h)The amendments made to this section by the act adding this subdivision shall apply to notices furnished on or after January 1, 2024.
(i)This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
Future Version
Repealed (in Sec. 1) and added by Stats. 2023, Ch. 277, Sec. 2. (AB 1355) Effective January 1, 2024. Operative January 1, 2029, by its own provisions.
(a)(1) An employer shall notify all employees that they may be eligible for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California EITC, within one week before or after, or at the same time, that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee.
(2)An employer shall send a second notification to all employees during the month of March of the same year in which the employer notified employees pursuant to paragraph (1).
(b)(1) The state departments and agencies that serve those who may qualify for VITA or state and federal antipoverty
tax credits, including the federal and the California EITC, as defined in subdivision (e) of Section 19852, shall notify their program recipients that they may be eligible for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California EITC, at least once per year during the months of January through March, or, alternatively, shall provide both notifications during a regularly scheduled contact with a recipient by telephone, mail, or electronic communication, or by an in-person communication.
(2)State departments or agencies that serve those who may qualify for VITA or state and federal antipoverty tax credits, including the federal and the California EITC, as defined in subdivision (e) of Section 19852, and that do not directly communicate with persons or households with persons who may qualify for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California
EITC, may communicate indirectly through agencies, districts, or regulated entities that serve eligible persons or households with eligible persons.
(3)State departments or agencies that serve those who may qualify for VITA or state and federal antipoverty tax credits, including the federal EITC and the California EITC, as defined in subdivision (e) of Section 19852, are encouraged to develop the most effective method to provide notice to recipients of eligibility for VITA, CalFile, and state and federal antipoverty tax credits, including the federal and the California EITC, as long as the notice contains substantially the same language as the notice described in Section 19854.
(c)(1) The employer shall provide the notifications required by subdivision (a) by handing them directly to the employee or mailing them to the employee’s last known address.
(2)Any notice created by the employer shall include substantially the same language as the notice described in Section 19854.
(3)The notification required by paragraph (2) of subdivision (a) may be sent electronically.
(d)The employer shall not satisfy the notification required by subdivision (a) by posting a notice on an employee bulletin board or sending it through office mail. However, these methods of notification are encouraged to help inform all employees of VITA, CalFile, and state and federal antipoverty tax credit eligibility, including the federal and the California EITC.
(e)The amendments made to this section by Section 3 of Chapter 294 of the Statutes of 2016 shall apply to notices furnished on or after January 1, 2017.
(f)The amendments made to this section by Section 10 of Chapter 55 of the Statutes of 2023 shall apply to notices furnished on or after January 1, 2024.
(g)This section shall become operative on January 1, 2029.
Amended by Stats. 2023, Ch. 55, Sec. 11. (SB 131) Effective July 10, 2023.
(a)The notice required under Section 19853 to be furnished to employees and public assistance program recipients regarding the availability of the federal and the California EITC shall state substantially as follows:
Based on your annual earning, you may be eligible for the following assistance:
Voluntary Income Tax Assistance (VITA) Program – VITA is a free basic income tax return preparation program, for federal and state personal income tax returns, managed by the Internal Revenue Service and operated by Internal Revenue Service partners and trained volunteers.
Federal Earned Income Tax Credit (federal EITC) – The federal EITC is a refundable credit for
low-income working individuals and families. The federal EITC will not impact certain public assistance benefits. In addition, federal EITC payments are typically NOT used to determine eligibility for the following:
(A) Medicaid.
(B) Supplemental Security Income.
(C) Supplemental Nutrition Assistance Program.
(D) Low-income housing.
(E) Temporary Assistance for Needy Families payments.
To receive the federal EITC, you must file a federal tax return and fill out the EITC form, which can be found in the Federal Income Tax Return Booklet. For additional information on your eligibility to receive the federal EITC and other federal antipoverty tax
credits, visit www.irs.gov.
California Earned Income Tax Credit (California EITC) and Young Child Tax Credit (YCTC) – The California EITC and YCTC are refundable credits for low-income working individuals and families. The California EITC and YCTC are similar to the federal EITC and will not impact certain public assistance benefits.
Foster Youth Tax Credit (FYTC) – The FYTC is a refundable credit for former and current foster youth between 18 and 25 years of age who were in foster care while 13 years of age or older. The FYTC will not impact certain public assistance benefits.
To claim the California EITC, you must file a California Income Tax Return and fill out the California EITC form (Form FTB 3514) and attach it to your tax return. For additional information on the availability of the credit, including eligibility requirements, or form questions, visit www.ftb.ca.gov and
enter “CalEITC” in the search box.
You may also be eligible to have both your federal and state tax returns prepared and filed for free using VITA services. For additional information on the free tax filing service, and location and hours of operation, visit www.ftb.ca.gov and enter “VITA” in the search box.
Additionally, you may be eligible to e-file your California return directly with the Franchise Tax Board for free using CalFile. For additional information on CalFile, visit www.ftb.ca.gov and enter “CalFile” in the search box.
(b)The amendments made to this section by Chapter 294 of the Statutes of 2016 apply to notices furnished on or after January 1, 2017.
(c)The amendments made to this section by the act adding this subdivision shall apply to
notices furnished on or after January 1, 2024.