California leads the nation in poverty, but one of the most powerful anti-poverty tools available is underutilized. Each year, billions of dollars in cash-back tax credits go unclaimed by the people who could benefit the most.
Since 2019, Golden State Opportunity has advocated for working families to claim these valuable benefits. That year, our education and outreach contributed to:
- $6.7B in tax credits returned to families
- An increase of over $400M claimed through tax credits
- 74,000 jobs created or sustained due to state and federal Earned Income Tax Credit (EITC) funds in California
The Impact of Earned Income Tax Credits in California
Earned Income Tax Credits, such as the CalEITC, Young Child Tax Credit, and Foster Youth Tax Credit are valuable benefits for individuals and families.
Federal EITC claimed = $6.3 billion (2.6 million households) [2]
California EITC claimed = $395 million (2 million households)
Jobs created/sustained = 74,000
Total economic activity = $14 billion
State tax revenue generated = $219 million
Our Fair Share
In 2020, Golden State Opportunity published a report that breaks down the EITC’s economic impact with detailed data on job creation, economic multipliers, and policy recommendations.
Our Fair Share lays out how the Earned Income Tax Credit functions as an economic stimulus in California and the United States; how the EITC was counteracting the growing inequality in our country, what role this credit can play in stabilizing individuals and families in the months and years ahead, and how robust state-level EITC programs maximize the federal EITC’s impact.
Download Our Fair Share:
The Earned Income Tax Credit’s Crucial Role During a Recession
Billions in Benefits Go Unclaimed Every Year
Here’s what most people don’t know: millions of eligible Californians don’t claim the tax credits and benefits they’ve already earned. Credits like the California Earned Income Tax Credit (CalEITC), the Foster Youth Tax Credit, and the Young Child Tax Credit can reduce the amount of tax owed or provide a cash refund.
So why do tax credits go unclaimed?
- Some eligible Californians aren’t aware of the credits or don’t know whether they qualify.
- New tax filers may feel skeptical about the tax system.
- Lack of access to trusted, free tax preparation is a major obstacle.
Connecting Families with Refunds
Golden State Opportunity runs the largest CalEITC outreach program in the state. Last year alone, our outreach helped Californians file over 26,000 tax returns and claim over $18M in refunds, including over $1.8M in CalEITC credits.
How was this accomplished? Together with trusted local partners, GSO reaches eligible Californians where they’re at and advocates for policy change in the capitol.
Here’s GSO’s Approach:
- Direct outreach to eligible Californians who don’t know they qualify
- Free tax preparation assistance through community partnerships
- Multilingual campaigns and tools, like our free Tax Credit Calculator
- Policy advocacy for expanded tax credits
Frequently Asked Questions
A primary driver is housing costs. California has the highest housing costs in the nation, which disproportionately impacts low-income families who may spend 50-70% of their income on rent. When you adjust for cost of living (using the Supplemental Poverty Measure), California’s poverty rate exceeds every other state.
GSO is a California nonprofit that connects working families with tax credits and public benefits they’ve earned but may not be aware of. We’ve helped return over $1 billion to California families through education, outreach, and advocacy about tax credits.
Many organizations who work with low income residents provide direct services for essentials like food and housing. GSO’s approach focuses on putting money in people’s pockets by ensuring families can claim the cash-back credits and benefits they’ve already earned.
There are lots of ways to support or work: donate to fund our outreach, subscribe to stay informed about policy changes, take action to write to your representatives, or volunteer to work with our team in the community.
Make a Gift
Your donation funds direct outreach to families who don’t know they qualify for help.
$25 → Reaches 10 families with benefits information
$100 → Provides one family with complete tax preparation
$500 → Funds a community outreach event reaching 100+ families
Sources
- California Poverty Measure (CPM), PPIC & Stanford Center on Poverty and Inequality (2023). Overall CA poverty rate ~18.9% by Census Supplemental Poverty Measure ≈ 1 in 5 Californians. Child poverty: 1.2 million California children (13.8%). Sources: Cal Budget Center | Kidsdata.org | PPIC
- “New Analysis Confirms EITC’s Status as Proven Economic Stimulus” — Golden State Opportunity (2019 data). Includes federal EITC ($6.3B, 2.6M households), CalEITC ($395M, 2M households), 74,000 jobs, $14B economic activity, $219M state tax revenue, $400M increase since 2015. Source: goldenstateopportunity.org
- Golden State Opportunity 2022 Impact Data. Source: goldenstateopportunity.org