FOR IMMEDIATE RELEASE:
Friday, September 18, 2020
California United Ways and Statewide CalEITC Coalition Laud Governor Newsom’s Expansion of the State's Earned Income and Young Child Tax Credits to All Californians Who File Taxes, Not Just Those With Social Security Numbers
[Sacramento, Calif.] – The California Earned Income Tax Credit Coalition, made up of over 60 anti-poverty, immigrant rights, and community-based organizations, applauds Governor Gavin Newsom’s historic decision to sign AB 1876 (Arambula AD-31) into law. Both non-citizen immigrant households, as well as mixed-status families in which one tax filer has a Social Security Number while the other does not, will directly benefit from the expansion of California’s anti-poverty tax credits.
Governor Newsom’s elimination of the arbitrary exclusion of Californians who file their taxes with a federally-issued Individual Tax Identification Number (ITIN) from the up to $2,982 California Earned Income Tax Credit (CalEITC) Tax Credit, and the up to $1,000 Young Child Tax Credit (YCTC) is historic. California is only the second state in the country to take action to address this inequity.
The CalEITC, including the YCTC, is one of the most powerful, immediate, and critical tools that the state has to help lift families out of poverty. Yet for several years, those who file their taxes with an Individual Taxpayer Identification Number (ITIN) have been left out. Including ITIN filers in the CalEITC and YCTC will provide critical support to over 600,000 individuals, including over 200,000 children, and will target resources most effectively while reducing inequality, stimulating the economy, and counterbalancing recessionary impacts that hit immigrant communities and communities of color the hardest.