BY Michael Pineda
The State of California has paved the way for putting more money in the pockets of those who need it most through the impact of COVID-19 with the expansion of the California Earned Tax Credit.
Governor Gavin Newsome has signed on to the expansion, which will provide eligibility for an additional 600,000 Californians, including 200,000 children, the governor’s website reported.
Individuals who present an eligible undocumented taxpayer identification number will also have access to the tax credit for young children. Eligibility has been extended to ITIN filers for those with children aged five or younger.
One thing AB 1876 did was remove the requirement for an ITIN compiler to have at least one six-year-old child for eligibility. Of those who benefit, 97% are children of color and 90% are Latinos.
The actions taken are to help those who suffer most recover from the toll the coronavirus has taken on the economy and state citizens.
It turned out that a toll was needed for low-income black residents. An estimated 289,059 undocumented workers lost their jobs in the first two months of the pandemic, the press release reported. Among the people who suffered the most were women.
“The COVID-19 pandemic has hit California families hard, especially families of color that have already been disproportionately affected by the ongoing economic crisis. Frontline undocumented workers leave their families every day to keep our economy running, but many are still struggling to make ends meet, “Newsom said in the news release.
The CalEITC expansion will provide a fundamental boost to undocumented and mixed-status families across the state, stimulate the economy, and make us all stronger in the face of economic uncertainty. These Californians are taxpayers and should be treated as taxpayers, be entitled to the same credits and pay the same tax rates. “
The signing of AB1876 falls in conjunction with the state’s $ 75 million investment in humanitarian aid to undocumented workers that has reached 150,000 people. The privately funded Immigrant Resilience Fund also distributed $ 37.4 million across eight different regions of the state.
“The CalEITC is a powerful tool to help hard working families in this state,” first partner Jennifer Siebel Newsom said in the press release. “I am proud that the governor is signing this vital piece of legislation to ensure this transformative advantage reaches even more families.”