The number of claims for the California Earned Income Tax Credit (Cal EITC) is projected to exceed the total number of claims made in 2018 by a significant margin. Cal EITC Claims Expected to Surpass 2018 Figures A substantial rise in the number of Cal EITC claims is anticipated, indicating a growing trend in utilizing this tax credit. This projection demonstrates a significant increase in the financial benefits received by eligible individuals and families in California.
March 18, 2019The remarkable increase in claims for the California Earned Income Tax Credit (Cal EITC) is poised to greatly exceed the numbers seen in 2018.
RECORD-BREAKING NUMBERS OF LOW-INCOME WORKERS REAPING THE BENEFITS OF CALIFORNIA TAX CREDIT
CALIFORNIA —According to recent data from the Franchise Tax Board, over 827,000 individuals with low-income in California have successfully claimed $180 million via the Earned Income Tax Credit (Cal EITC) in the initial two months of 2019. This represents a substantial 40 percent surge in claims compared to the same period in the previous year.
The increase in claims can be attributed to the broader range of people now eligible for the credit, as well as California's dedication to promoting Cal EITC. It is noteworthy that this year, individuals employed full-time and earning $12 per hour are able to apply for the credit. California stands apart from other states, as it is the first to expand EITC eligibility to adults aged 65 and older, and also grants access to younger individuals aged 18 to 24 who are at the beginning of their careers.
Josh Fryday, the President of Golden State Opportunity / CalEITC4Me, stated that they are aware of the transformative power of the Cal EITC in alleviating poverty. The recent data presented by the Franchise Tax Board clearly demonstrates its wide-ranging influence. Fryday emphasized that this impact could be significantly enhanced if the Legislature embraces Governor Gavin Newsom's proposition to more than double the funding for this crucial anti-poverty initiative.
The Cal EITC has already had a significant effect on the economy, injecting hundreds of millions of dollars into the state's economic activities by means of income, business transactions, job creation, and tax income. For individuals in California who rely on each paycheck to get by, this credit can provide the necessary assistance to cope with the escalating expenses of fundamental needs like housing, healthcare, food, and transportation. It may be what separates timely rent payments from incurring late fees that ultimately lead to eviction.
The governor's budget proposal aims to extend the coverage of the Cal EITC to encompass all employees earning $15 per hour, as well as grant an extra $500 to families with children under the age of 6. This would result in approximately one million additional individuals being eligible to receive this tax credit, while also substantially enhancing its impact on families with young children.
In the year 2018, over 1.4 million residents of California successfully applied for and received a total sum of $346 million through the credit. This was done between the months of January and October 15, which happened to be the final date for filing an amended income tax return. As Tax Day approaches, there are still five weeks remaining, providing ample time for individuals to claim the credit. Furthermore, there is a total of over seven months left in the year for Californians to take advantage of this opportunity. It is highly likely that California will surpass its previous records and establish a new milestone for both the number of claims and the amount of cash back received through the Cal EITC program in the year 2019.
CalEITC4Me serves as a comprehensive statewide initiative aimed at advocating for the utilization of this well-established poverty-alleviating strategy. Since its establishment in 2015, CalEITC4Me has successfully assisted over 2 million individuals in acquiring $4 billion in funds from the EITC programs provided by both the state and federal government. In the present year, CalEITC4Me endeavors to guarantee that a substantial sum of $400 million in Cal EITC funds will be made available to eligible employees, while simultaneously encouraging an increased number of individuals to apply for the federal EITC program as well.
As of now in the year 2019, the mean sum of Cal EITC has observed a decline of 14 percent, from $253 to $217, indicating the widened qualification for claimants who don't have dependents. The amount of credit is significantly higher for households with children, and once again in this current year, nearly 90 percent of Cal EITC funds are being distributed to parents, as unveiled by the FTB statistics.