Tax reminders: Claiming exemption from withholding and Earned Income Tax Credits
As 2018 comes to a close, here are some additional important reminders and announcements related to your taxes. Some may require action on your part. (Note: The first set of year-end reminders about your pay, benefits and tax forms can be found in this Link article.)
Federal and State Earned Income Tax Credit (EITC)
In accordance with the Earned Income Tax Credit Information Act, the university includes a notice with all Form W-2 statements notifying employees that they may be eligible for the federal Earned Income Tax Credit (EITC). The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund. To see if you qualify, use the EITC Assistant. Additional information regarding the federal Earned Income Tax Credit (EITC), can be obtained by referencing IRS Notice 797, or by contacting the Internal Revenue Service by calling 1-800-829-3676 or through its website at www.irs.gov.
You also may be eligible to receive the California Earned Income Tax Credit (California EITC) starting with the 2015 tax year. The California EITC is a refundable state income tax credit for low-income working individuals and families. The California EITC is treated in the same manner as the federal EITC and generally will not be used to determine eligibility for welfare benefits under California law. To claim the California EITC, even if you do not owe California taxes, you must file a California income tax return and complete and attach the California EITC form (FTB 3514). For information on the availability of the credit, eligibility requirements, and how to obtain the necessary California forms and get help filing, contact the Franchise Tax Board at 800-852-5711 or through its web site at www.ftb.ca.gov.
Complete a new W-4 form if claiming exemption from withholding
The IRS requires you to complete a new W-4 form each year if you are claiming exemption from tax withholding. If you wish to claim exemption from withholding in 2019, you must make this choice on UCPath online before Feb. 15, 2019.
Have questions or need help?
Please visit UCPath and click on Ask UCPath Center to submit an inquiry. You may also call the UCPath Center at 855‐982‐7284 from 8 a.m. to 5 p.m. (PDT) Monday–Friday and speak with an associate.