California Tax Credits Available for Families with Mixed Immigration Status
Thousands of AAPI families in California who meet income requirements could be eligible for the California Earned Income Tax Credit (CalEITC), which can provide up to $3,529 per family.
SACRAMENTO, CALIFORNIA– In preparation for the tax season, the Office of Community Partnerships and Strategic Communications (OCPSC) hosted a news briefing to raise awareness within AAPI communities regarding the benefits of the Individual Taxpayer Identification Number (ITIN), with a special emphasis on the significant state-specific tax credits available to Californian ITIN holders.
The ITIN is a powerful tool that allows individuals from immigrant and mixed-status families to actively participate in the U.S. tax system. By providing a pathway for tax filing and access to tax credits, ITIN plays a crucial role in empowering these communities.
“We strongly believe that this is an incredible resource for our Asian American communities. We’re trying to make sure everyone knows how helpful it is to have an ITIN, for a myriad of reasons. So please, get this information out to your networks so we can continue to build a stronger, more financially resilient community,” said Andrea Vogler, Senior Programs Coordinator, Golden State Opportunity.
Thousands of Asian American families in California who meet income requirements could be eligible for the California Earned Income Tax Credit (CalEITC), which can provide up to $3,529 cash back per family. Additionally, the Young Child Tax Credit (YCTC) offers up to $1,117 per eligible tax return, providing a substantial financial boost to those within the community.
“We know there’s some hesitancy in our communities about what an ITIN is and who has access to our information. Plain and simple: An ITIN helps you create a record of your income and can give you access to resources through a couple different tax credits. Your information is not shared with Immigration Authorities and cannot hurt your chances of getting a green card,” said Kerry Situ, Chinatown Service Center.
Key Highlights:
- ITIN establishes a financial history enabling access to resources like a driver’s license, mortgage for a home, and financial aid for college.
- Acknowledging the diverse cultural nuances within AAPI communities, the briefing presented information in a contextually relevant manner. By addressing specific cultural considerations, the Office aimed to ensure the benefits of ITIN to individuals from various backgrounds.
- According to the IRS, in 2015, 4.4 million ITIN filers paid over $5.5 billion in payroll and Medicare taxes and $23.6 billion in total taxes.
- In tax year 2019, the IRS reported that it had received over 2 million returns filed by a primary taxpayer with an ITIN.
- In 2020, California and Colorado became the first states to allow ITIN filers to claim their state’s EITC. The District of Columbia, Illinois, Maine, Maryland, New Mexico, Oregon, and Washington have also made ITIN filers eligible for their state EITC.
The news briefing took place on January 24th, 2024. To access the video recording, click here.
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