The federal and state Earned Income Tax Credits can provide a significant financial boost to low-income Californians. However, there is concern that some eligible Californians are missing out on these credits, and this report summarizes a two-year effort to increase the number of eligible Californians who claim the federal and state Earned Income Tax Credits (EITCs), which can provide a significant financial boost to low-income families.
In a series of randomized trials, more than one million Californians received text messages and letters designed to inform them about the credits. Although some people engaged with online resources about the EITC shared in the texts and letters, these efforts had no effect on increasing the number of people who filed a tax return or claimed the EITCs, indicating that these additional, targeted outreach strategies were not enough to increase take-up of the EITCs amongst low-income households.
This work has been supported, in part, by the University of California Multicampus Research Programs and Initiatives grant MRP-19-600774.