The Limits Of Nudging: Why Can’t California Get People To Take Free Money?

The Earned Income Tax Credit supplements incomes through the tax code, awarding thousands of dollars each year primarily to low-wage workers with kids. But there’s a problem: a huge population of eligible workers fails to file their taxes and get the money each year. Several years ago, the state of California established their own state EITC (CalEITC) on top of the federal one. Depending on how many kids they have and how much they earn, a Californian who files for both the state and federal credit can get upwards of $6,000. ….[READ]