State of the States 2016, January 25, 2016, Stateline: “Stateline’s annual State of the States series looks at some of the pressing issues state lawmakers are facing as they begin their work this month. The five-part series includes analytical articles, infographics and interactives…”
Tag: Taxes
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…”
Tax Refund Anticipation Checks
More cash-strapped Americans turn to tax refund advances, By Hope Yen (AP), March 22, 2015, ABC News: “Cash-strapped Americans anxious for tax refunds are increasingly turning to payment advances, prepaid cards or other costly services when getting tax preparation help, according to new federal data raising concerns among regulators about whether consumers are fully informed about the fees. Regulators are looking to increase oversight of preparers amid the rise in ‘refund anticipation checks,’ a type of cash advance especially popular among low-income families who receive the Earned Income Tax Credit, the government’s $65 billion cash benefit program. The advances are being marketed as a way to get fast refunds or defer payment of tax preparation costs…”