Impact of Recent Federal Changes on the California Earned Income Tax Credit (CalEITC)

FTB reports that it is currently reviewing the overall impacts of the recent federal legislation as it relates to California income tax filing. The review will include applicable methods for resolving any differences for taxpayers who have already filed their income tax returns, and FTB will provide additional information in the near future.
Changes to federal AGI may impact the ability of a taxpayer to claim certain credits, including CalEITC. Whether a taxpayer is entitled to the credit is dependent upon a taxpayer’s particular facts and circumstances:

  • For taxpayers who have not yet filed, FTB is updating its instructions specific to the changes related to the federal unemployment insurance exclusion.
  • For taxpayers who already filed, FTB is also evaluating the potential impacts to taxpayers claiming the CalEITC. It is not necessary to file an amended return at this time.