by Dennis Tivey, Communication & Outreach Coordinator
Each year at tax time, DSS promotes the Earned Income Tax Credit (EITC) to our clients — both the federal EITC and the new California state EITC (CalEITC). A new report shows how important this can be for our clients.
While the benefits of the federal EITC have been known for years, the recent report by the Franchise Tax Board (FTB) shows who benefits from the CalEITC, and how much. With several proposals to expand the credit moving through the Legislature, this report can help inform the debate over how to build on the credit in coming years.
The FTB report shows that:
- The CalEITC benefited around 815,000 Californians in tax year 2015, nearly half of whom were probably children.
- More than 9 in 10 CalEITC dollars went to families with children.
- Families with multiple children received an average credit of more than $1,000 from the CalEITC alone.
- The CalEITC, together with the federal EITC, lifted an estimated 255,000 Californians out of deep poverty.
A summary of the report can be found here.