History has shown us that the EITC is the best way to fight financial stress. It’s one of the few programs that actually puts money back in the pockets of working people. Qualifying recipients can use this money as they see fit; whether to pay monthly rent, make a car payment, visit a doctor, or buy their children desperately needed new shoes.
The EITC is about creating a future where everyone who works can afford their basic needs and live with full financial security and human dignity.
The EITC works by making work pay better. Research shows that children whose families earn the EITC perform better in school, have better health, and earn more as adults. The EITC encourages work, reduces reliance on welfare and boosts the Social Security retirement savings for those who need it most.
In the first two years of California’s EITC, over $2 billion in state and federal tax credits have been put back in the pockets of the lowest income Californians. But we knew California could do more to help working families. In response to our calls, texts, and emails, the legislature raised the income eligibility threshold, meaning more working families will now qualify for the EITC. The California EITC will also include self-reported freelance income for the first time – work like housekeeping, landscaping, or driving for a ride-sharing company. This work, done disproportionately by women and people of color, will now be honored by the California EITC.