Tax season is coming to a close with April 15 quickly approaching. Many people are now scrambling to prepare their taxes in order to meet the deadline. Obtaining a federal and state refund is always the goal, but for some taxes represent another way to help feed the family or pay bills. This is the reality for most residents in the underserved communities GRID serves who struggle daily to ensure that their families find success and identify opportunities wherever possible.
GRID Alternatives assists income qualified homeowners reduce their electric bills, however there are other programs available that also make an impact. Golden State Opportunity focuses on the Earned Income Tax Credit (EITC) through their initiative CalEITC4Me which supports low-income families by delivering over $7 billion in the form of tax credits. Unfortunately, despite the outreach done to promote EITC, many Californians are still unaware of the program.
The EITC has proven to be one of the most effective tools in America to help families improve their financial condition. According to Juan Villa, a field organizer for Golden State Opportunity, a common misconception is some people believe tax credit recipients use the funds unwisely. The truth is that people utilize tax credits to pay off debt, buy household necessities, and invest into their children. “Tax season is a beacon of hope once a year where they can help their families,” Juan said. “It’s a valuable tool for hardworking low-income families.”
While there are eligibility requirements, all working and self-employed people who make under $22,300 and below are eligible to earn an EITC credit of up to $6,000 simply because they file taxes. According to Golden State, the majority of Californians eligible for the EITC are single, women and work part-time. California is also the state which has the highest rate of unclaimed EITC per year. While eligibility may vary year to year based on changes in financial, marital, and parental status, over 75 percent who filed for Cal EITC in 2017 were new filers.
Throughout February Golden State Opportunity hosted GRID Alternatives at their Tacos and Taxes events providing the community a wealth of resources and opportunities. The events helped attendees to learn more about GRID’s process, as well as some attendees earn a $200 referral reward for identifying an eligible homeowner to our program!
While Golden State Opportunity does not actually prepare taxes, they have a breadth of resources and community partners who can direct families to volunteer income tax preparers. Their website http://caleitc4me.org/ has all the information available to determine eligibility, as well as numerous local resources ranging from a Free Tax Prep Finder to a variety of fact sheets about the EITC. Text MONEY to (760) 970-8396 to find out how much EITC money you could get back!