California workers who file taxes using Individual Taxpayer Identification Numbers (ITINs) are currently excluded from the CalEITC, the state’s refundable tax credit for working individuals and families with low incomes. The majority of these excluded immigrant workers – an estimated 2 in 3 of those who could be eligible for the CalEITC – perform jobs considered “essential” during the COVID-19 crisis.
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Too many families and individuals in all regions of California struggle to afford the costs of housing, child care, health care, food, and other basic necessities – with serious consequences for health and well-being that can also affect the broader community and economy. Many families that include immigrants face particular challenges to maintaining economic security, even in a strong economy, due to jobs with low wages, unstable work, and the “chilling effect” of recent anti-immigrant federal actions. An economic downturn would likely hit these families and their communities especially hard.
State policymakers have an opportunity to lead again by making the CalEITC inclusive of immigrant families who are not eligible to receive it today. This easy-to-print infographic shows what the tax credits can help pay for in a family budget and why including immigrant families is a critical next step for California.
The California Budget & Policy Center released a new report today showing that while California has significantly expanded its Earned Income Tax Credit – known as CalEITC – in the last few years, hundreds of thousands of immigrant families face social and economic disparities because they are excluded from the tax credit even though they file taxes. In the Budget Center’s latest piece – Five Reasons Why California Should Extend the CalEITC and Young Child Tax Credit to Immigrant Families and Communities we outline the strong equity and economic cases for making the credits inclusive of immigrant families.
State policymakers have significantly expanded California’s Earned Income Tax Credit — the CalEITC — since the credit was first enacted in 2015. However, hundreds of thousands of immigrant families are excluded from benefiting from the CalEITC as well as from California’s new Young Child Tax Credit, which is tied to CalEITC eligibility.
The California Budget & Policy Center’s guide, The CalEITC and Young Child Tax Credit: Smart Investments to Broaden Economic Security for Californians, provides an overview of how refundable state income tax credits help people who earn little from their jobs to pay for basic necessities and support families, children, and communities.
With the Legislature scheduled to start voting today on a final 2019-20 state budget, the Budget Center team is sharing an update on the five key issues we have been watching that affect the health and well-being of millions of low- and middle-income children, families, and adults. And with Governor Newsom signaling his approval of the budget bill earlier this week, it’s anticipated significant investments will move forward for Californians.
Read on to learn more about how the 2019-20 budget bill:
helps children and parents in need of subsidized child care; » Read more about: Key Investments for Low-Income Californians in 2019-20 Budget Bill, CalEITC Still Unresolved »
In the next few weeks, state policymakers will decide whether to expand California’s Earned Income Tax Credit (CalEITC) — a refundable state tax credit that boosts the incomes of families and individuals who earn little from their jobs. Governor Newsom’s revised budget proposes to expand the credit beyond what he proposed in January, as we explain in our analysis of the May Revision. (For details on the Governor’s January proposal, see our chartbook.) Now all eyes turn to the Assembly and Senate budget committees, » Read more about: Expanding the CalEITC Is an Effective Way to Invest in California’s Children, But Hundreds of Thousands of Children of Immigrants Won’t Benefit Unless Policymakers Act »
The Budget Center hosted a special briefing event on the California Earned Income Tax Credit (CalEITC), a refundable state tax credit modeled after the federal EITC that helps people who earn little from their jobs afford basic necessities. As part of our Policy Perspectives Speakers Series, this event discussed Governor Gavin Newsom’s plans in the 2019-20 state budget proposal to significantly expand the CalEITC.
The California Budget & Policy Center hosted a special briefing event on the California Earned Income Tax Credit (CalEITC). This event discussed Governor Gavin Newsom’s plans in the 2019-20 state budget proposal to significantly expand the CalEITC and how this expansion would work, who would benefit from it, and issues policymakers should consider as this proposal moves forward.