For many residents, the tax refunds they receive are essential and they count on them. But what many Angelenos may not be aware of is the numerous tax credits available to them, leaving potentially millions of dollars unclaimed.
With the cost of gas and groceries rising, knowing what benefits they’re eligible for before filing taxes next week becomes more important.
Around one in five eligible residents in Los Angeles County miss out on tax credits each year, according to Free Tax Prep LA (FTPLA) – a collaborative initiative that includes the city of LA’s Community Investment for Families Department (CIFD), the county’s Department of Consumer and Business Affairs and the Koreatown Youth + Community Center (KYCC). This leaves up to $579 million in tax credits unclaimed each year.
Residents who earn less than $70,000 can file for free and may be eligible for federal and state tax credits, including the Earned Income Tax Credit (EITC), the CalEITC and the Young Child Tax Credit.
The tax credits are also worth more this year than in 2025. For instance, the EITC is worth up to $8,046 compared to $7,000 last year. The CalEITC is up to $3,756 (from $3,600), and the Young Child Tax Credit provides an additional $1,189 (from last year’s $1,000).
Taylor Lee, the campaign and partnership coordinator at KYCC, who leads the FTPLA program with the city of LA, said that as the cost of living keeps rising, it’s more important this tax season for people to know the credits they can apply for.
“On top of that, for the one in five people that don’t claim every year, … they can claim multiple years,” Lee said. “They can file for three years at a time at our Free Tap Prep LA sites, at VITA [Volunteer Income Tax Assistance] sites, completely for free and get the full amount of that refund. … That is just a tremendous amount which can really help during tough times.”
Lee shared a couple of testimonials from people who have used FTPLA to get tax refunds they sorely needed. One was from a woman named Martha, a mother of three children, ages 5 to 18 years old, who, in years past, had to pay for tax preparation services. With the aid of KYCC this year, she received $10,703.
Another came from Norma Martinez, also a mother of three, who is the sole household earner – making ends meet through Uber and DoorDash. She was concerned about being ineligible for tax credits because of her children’s ages, but with information provided by KYCC, she received a total refund of $9,250.
“So these two families … definitely were able to benefit from going to a free tax preparation site and not need to pay anybody to file their taxes, which would’ve taken a portion of their refund from them,” Lee said. “They were able to get quite a large amount, not only to help with their own debts, but also to put towards their children.”
There are plenty of misconceptions around tax credits that may prevent people from claiming them, Lee continued, beyond just not being aware of them. One of them is the belief that after the April 15 deadline, you’re not eligible to claim the tax credits for that year, which she said is untrue.
Another concern is that residents feel they don’t make enough to qualify. Lee said that there are plenty of accessible credits for people with very low income, including the EITC and Child Tax Credit.
Information about these credits is available at the FTPLA website, which also lists dozens of locations, including VITA sites in LA, where people can go for help. In the San Fernando Valley, there are 21 available locations, although most require an appointment. Only the Sunland-Tujunga Library and the VITA site at the Reseda Church of Christ accept walk-ins during specific hours on Saturday and Sunday, respectively.
Lee also encourages people to check out both the Internal Revenue Service (IRS) website for federal credits and the Franchise Tax Board for state credits to find out what they are eligible for.
All this information will be provided in an event on the morning of Tax Day at the KYCC, where they will help some people file their taxes, but mostly to raise awareness about credits and the extended tax season that ends in October. For those who know they will owe money, Lee advised filing for that extension, which they can do up until April 15.
“If you don’t owe and you know for sure that you’re due a refund, you have up to three years to file, so you don’t need to be as concerned,” Lee said. “However, if you’re not sure whether you should file or you’re due a refund, definitely go try and file as soon as possible, or file for an extension if you’re not sure.”
Some centers will continue to operate during that time, including the New Economics for Women sites in Van Nuys and Canoga Park.
For more information about FTPLA and to find available locations around the San Fernando Valley where you can receive help filing your taxes, go to https://www.freetaxprepla.com/.
To learn more about credits and deductions from the IRS, visit https://www.irs.gov/credits-and-deductions.