CA $600 Stimulus for Amazon Flex drivers

[Rito4ka2010]

I can't tell if anyone asked already, so: If you live in California, work for Amazon flex, recieved a 1099 NEC form and therefore not eligible for the California earned income credit (FEDERAL however says eligible for federal earned income credit), will you not recieve the California $600 stimulus that was recently signed into law even if you made under $7,000 and filed with a SSN?

[Rito4ka2010]

Ps: The reason I am asking is because it says to qualify you either need to qualify for cal EIC and/or use ITN in addition to being low income. 

[JoannaB2]

It depends.  California will provide a one-time payment of $600 or $1,200 to eligible recipients. To qualify, recipients must:

• Have filed their 2020 tax return
• Be either:
  • A CALEITC recipient
  • An ITIN filer who makes $75,000 or less (total CA AGI)
• Be a California resident on the date payment is issued.

For California taxpayers that filed 2020 California income tax return,  you may be eligible to receive CALEITC under the following guidelines:

• Taxpayer will receive a California Earned Income Tax Credit (CALEITC) with a valid SSN of $600.
• Taxpayer with ITIN will receive a CALEITC of $1,200
• Taxpayer is not a CALEITC recipient, but file with an ITIN and made $75,000 or less (total CA AGI) will receive $600.

• Taxpayer filed a joint return and is a CALEITC recipient , at least one Taxpayer filed with an ITIN will receive $1,200

[Rito4ka2010]

I know that all. The reason I am asking is because when working for Amazon Flex as delivery drivers we get a 1099 NEC form making us not eligible for the California earned income credit. Therefore low income drivers who file with a SSN are not eligible for $600 stimulus, while drivers with ITIN are. Is this correct? I want to confirm because I filed with TurboTax and it stated that 1099 NEC does not qualify you for CALEITC, while it does qualify you for the federal EITC.

[Cynthiad66]

No.  Your Stimulus is not based on filing with a SSN or ITIN.

Your employer does not determine who should get the Stimulus payment.  It is a government stipend with clear qualification requirements.   If you have an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), you should be eligible for the full amount of the recovery rebate.  

CA EITC is not related to the Stimulus requirement.  You said your Form 1099NEC does not qualify for CAEITC and that is not correct.  To qualify, you must have income from employment, self-employment, or employer-paid disability benefits received prior to retirement. There is no limit to the number of times you can claim an EITC; you can claim one every year that you qualify.

Perhaps you mean Form 1099G Unemployment Compensation does not qualify for EITC because that is unearned income and does not qualify for the credit.

[Rito4ka2010]

I did file using TurboTax free for low income individuals with a 1099 NEC and the tool stated that I qualify for federal earned income credit, however,  it told me I do NOT qualify for california earned income credit. I filled as single and also 1098E and T as I was in school with scholarships and I paid interest on loans. No other forms. Also, I am a citizen with a SSN and lived in California the entire year.

[ThomasM125 · Accepted solution]

@Rito4ka2010 You cannot qualify for the California earned income tax credit (EITC) because your income was reported on a form 1099-NEC. This designates your income as self-employment income, as opposed to wage income. Self-employment cannot be used to qualify for the California EITC.

[Rito4ka2010]

Thank you.