
Asian Inc. tax preparer Crystal Huang helping a client prepare her 2015 tax returns. SACRAMENTO–The Golden State’s poverty statistics are grim: Two in five people live just over the federal poverty level (FPL), and the state has the highest child poverty rate in the nation. But this year, for the first time, California’s working poor will get to keep more of their earnings in their pockets thanks to the California Earned Income Tax Credit (EITC). But people with low incomes – less than $13,870 a year – must be sure to file their taxes in order to get their money back. 600,000 Families Eligible Around 600,000 families in California are eligible for the state EITC. Some 12 percent are Asian Americans or Pacific Islanders, 30 percent are Latino, 12 percent are Black, and more than 15,000 individuals are Native American. The majority of those eligible are single women who are working part-time jobs. Signed into law by Gov. Jerry Brown last year, the state’s EITC program is expected to cost the state $380 million. California is the 25th state, plus the District of Columbia, with such a program. The tax credit is modeled on the federal EITC program, which has been around since 1975. California Budget and Policy Center (CBPC) Communications Director Steven Bliss called the state program “an important tool for helping move the lowest earners toward economic security.” Some of those targeted for the program, he said, “have earnings so low that they may not even file state Read More …








