California is providing tax relief during the pandemic.

Individuals

The California Earned Income Tax Credit and Young Child Tax Credit are now available to taxpayers who have an Individual Taxpayer Identification Number (ITIN). These tax credits can be claimed on 2020 individual tax returns (which are filed in 2021).

Small business taxes

California and the federal government are providing tax assistance and benefits to small businesses. This includes:

  • Interest-free deferral of sales/use tax up to $50,000 for businesses with less than $5 million in taxable sales
  • A $1,000 tax credit for new employees hired by small businesses (up to $100,000 per business)
  • Excluding forgiven Paycheck Protection Program loans from state gross income
  • Federal tax credits to small businesses for COVID-19 employee paid leave

Questions and answers

Small business sales/use tax deferral

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