Brief Extending the California Earned Income Tax Credit to Postsecondary Students
Elaine Maag, Nikhita Airi
Display Date
Download Report
(189.18 KB)

Postsecondary education can be a critical step toward financial independence. Total college costs in California may present an extraordinary financial burden. For students with incomes under $30,000 in California, the cost of attendance at public universities (after accounting for existing grant aid) consumes about half of a person’s household income. Extending the maximum California earned income tax credit (CalEITC) to students who are independent for tax purposes, including students with no earnings, would increase the CalEITCs for 6 percent of independent students with income below $30,000 and make 8 percent of students with income below $30,000 newly eligible for benefits. The proposal would deliver $46 million in additional benefits each year to 146,000 students (11 percent of all independent students).

Research Areas Taxes and budgets State and local finance
Tags State and local tax issues Individual taxes
Policy Centers Urban-Brookings Tax Policy Center