EITC Facts

Why the EITC is so important:

  • The EITC is one of the most effective tools in America to lift families out of poverty
  • Last year, the Cal EITC put almost $200 Million directly into the hands of 400,000 working Californians
  • The Federal EITC delivers over $7 Billion to low-income Californians every year
  • Research shows children whose families receive a boost in income from EITC perform better in school and have better health.
  • The EITC enjoys wide bipartisan support for encouraging work and continued employment
  • Families use the EITC to buy shoes, put food on the table food, pay bills, and cover basic needs for their kids
  • Governor Brown described the CalEITC as one of his most important achievements

Why EITC Outreach and Education Matters:

  • Every year California leaves $2 Billion of unclaimed EITC money on the table
  • Research suggests outreach around state level EITC’s increase uptake of the Federal EITC.
  • About one-third of the EITC eligible population turns over each year
  • Workers move into and out of eligibility based on changes in their marital, parental and financial status
  • Three out of five who receive the credit use it temporarily, for one or two years.
  • You must claim the credit to receive it. Over 50,000 working people filed California taxes last year and failed to claim the credit
  • Many people who qualify for the credit and are eligible for up to $6,000 fail to simply file taxes because they make below the required income threshold