Lawmakers and Community Partners Gather to Celebrate a Decade of the California Earned Income Tax Credit (CalEITC)

 

 

SACRAMENTO – On Wednesday, Golden State Opportunity (GSO) celebrated 10 years of working to end poverty and a decade of the CalEITC. Alongside California State Controller Malia Cohen and State Treasurer Fiona Ma, GSO recognized the impact of a decade of the tax credit and the work the Legislature has done to increase the effectiveness of the CalEITC with the creation of the Young Child Tax Credit and the Foster Youth Tax Credit.

“The CalEITC has been a critical lifeline for so many Californians and GSO is proud to help put over $1.4 billion back into their pockets last year,” said Amy Everitt, President of GSO. “GSO was founded on a vision of ending poverty in California and as we look to the next decade, we want to think boldly about how the state will deploy its resources to fundamentally change the lives of working Californians.”

Since its inception in 2015, the CalEITC has served as a crucial financial lifeline for California’s working families. Paired with free tax preparation services, eligible individuals and households who file both state and federal tax returns stand to receive thousands of dollars in support—funds that can be used to help make rent, prepare for emergencies, or afford essential childcare services. By offering refundable tax credits, the program not only helps families navigate the rising costs of living but also bolsters economic resilience in communities statewide.

Over the past decade, California has put over $7 billion in tax credits back in the pockets of Californians who make less than $32,000 a year. The Franchise Tax Board has found that the combination of the CalEITC and YCTC lifts over 142,000 individuals out of deep poverty compared to a family’s base income without either EITC program.

At the event, GSO honored Senate President pro Tem Emeritus Toni Atkins with the Champion Award for her work toward the creation and expansion to the CalEITC. Governor Newsom received the Pioneer Award for his administration’s work to broaden eligibility of the CalEITC to include youth under the age of 25, families with young children (YCTC) and former foster youth (FYTC).

“The California EITC has been a powerful tool to lift families out of poverty, providing tax relief to working families,” said Atkins. “I’m proud of the work we have done over the last 10 years to expand access to help even more Californians make ends meet. Partners like GSO have been pivotal to ensuring every taxpayer is able to claim the credits they deserve and their community outreach was critical when we needed to provide pandemic relief fast. They have been trusted partners for the last decade and we look forward to another decade of partnership.”

GSO’s focus on community-powered outreach has helped California work to reach its goal to lift more people out of poverty and connect historically excluded communities with tax credits that maximize refunds. This work is undertaken by community connect partners, organizations that recruit and train volunteers to provide free tax preparation services and other wraparound services for the community.

GSO also recognized Isaías Hernández, Executive Director of Eastmont Community Center, a community connect partner in Los Angeles County. Hernandez has implemented innovative strategies, like training AmeriCorps members to become IRS-certified Volunteer Income Tax Assistance (VITA) preparers to expand access to the state’s support programs. Receiving the Community Champion award, Hernandez recognized the hard work organizations like his put in to reach as many members of the community as possible.

“GSO helps support the work we do at Eastmont Community Center to reach out to community members that trust us and support them through the tax filing process,” said Hernandez. “Without the leadership of the state, we would not have been able to build a coalition of community organizations to grow our collective reach, engaging hard-to-reach tax filers and providing them with free tax preparation assistance to bring more money back into their pockets.”

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Golden State Opportunity is a nonprofit dedicated to providing all Californians with the tools to build financial well-being and thrive. Connect with us on Facebook and X.