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New Member
posted Jun 1, 2019 12:36:11 AM

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

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1 Best answer
Level 13
Jun 1, 2019 12:36:13 AM

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.




1 Replies
Level 13
Jun 1, 2019 12:36:13 AM

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.