How is it possible that my California refund amount is greater than the amount I've paid in estimated tax?

[BMcCalpin · Accepted solution]

California, like the federal tax return, has the Earned Income Credit. This is a refundable credit that

• If you do not owe taxes, you get a refund of the CalEITC amount.
• If you owe taxes, CalEITC reduces the amount of taxes you owe and if there’sl any credit left, you get a refund.

Thus, it is entirely possible to get more refund back than you paid in. Note: the EITC is for families earning wages or self-employment income up to $24,950, so many taxpayers will not qualify.