Earned Income Tax Credit

Working poor bank on tax break in costly California, By Erica E. Phillips, April 6, 2015, Nasdaq.com: “For 30 years, Modesto Alejandro Vasquez has supported his family of four by working as a janitor in a downtown office building here. In 2014, he made about $30,000. Earning 25% above the federal poverty level in costly Southern California, Mr. Vasquez looks forward to this time of year, when a tax refund puts extra cash in his pocket. He said he used the money–$6,000 this year–to pay off debts and repair a computer for his daughter.  A large portion of the refund came via the federal Earned Income Tax Credit. The EITC is intended to aid the working poor by reducing the amount of taxes owed, or in many cases, like Mr. Vasquez’s, by providing a refund, based on a taxpayer’s income and number of dependents.  California lawmakers, responding to the state’s nation-leading poverty level, are considering the creation of a state EITC program…”