The California IRS has launched a campaign alerting 46,000 households that they could have qualified for the 2009 Earned Income Tax Credit, and that it’s not too late to claim a refund. The average refund is $1,400. Hat tip to the New America Foundation, which estimates that in 2009, one in five Californians eligible for EITC refunds didn’t claim them – 800,000 people left $1.2 billion on the table.
Walking away from “free money”? According to a standard economic model that just shouldn’t happen.