How do I determine my eligibility and claim the California Renter's Credit on my tax return?

To determine your eligibility and claim the California Renter's Credit, you must meet income and residency requirements and file a state tax return. The credit is available even if you don't owe any state tax, but you must file a return to claim it. Here is how to determine your eligibility and claim the credit: Step 1: Check Your Income Level Your California Adjusted Gross Income (AGI) must be at or below a specific amount for the tax year. For the 2023 tax year, your AGI must be $53,496 or less if you are single or married/RDP filing separately. The limit is $106,992 or less if you are married/RDP filing jointly, head of household, or a qualifying surviving spouse/RDP. Step 2: Confirm Your Residency Status You must be a California resident and have rented and occupied a property in California for at least half of the tax year (a minimum of 183 days). The property must be your principal residence. Step 3: Verify Other Eligibility Rules You cannot be claimed as a dependent on anyone else’s tax return. Additionally, the property you rented cannot have been exempt from California property tax (e.g., most on-campus university dorms). You are also ineligible if you lived with someone who claimed a homeowner's property tax exemption for that property. Step 4: File a California Tax Return You must file a California tax return (Form 540 or 540 2EZ) by the state's filing deadline, typically April 15th. On the form, you will answer the questions in the "Renter's Credit" section to claim it. Keep your landlord's name and address for your records, as the Franchise Tax Board may request it. Important details: The Renter's Credit is nonrefundable, meaning it can reduce your tax owed but you will not get money back if the credit is larger than your tax liability. If you are married/RDP and file separately, you may either split the credit or have one spouse/RDP claim the full amount. Warnings: You are not eligible for the credit if you or your spouse/RDP received welfare benefits such as CalWORKs or SSI/SSP for the entire year. Do not claim the credit if you are not eligible, as this may result in penalties. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney or tax professional.