California Expands EITC to All ITIN Filers

Last week, California Governor Gavin Newsom (D) signed legislation to expand access to the state’s Earned Income Tax Credit (EITC) to all filers using Individual Taxpayer Identification Numbers (ITINs).

In June, California became one of the first states to expand its EITC to ITIN filers with children under the age of six. This new legislation expands access to the credit to all ITIN filers in the state. The expansion comes after a multi-year effort by advocates to make the credit more inclusive for immigrant workers, who were previously excluded from both the federal credit and the CalEITC, despite contributing almost $3.2 billion in state and local taxes annually.

The California Budget & Policy Center estimates that this legislation will benefit between 500,000 and 700,000 California households. The expansion is particularly timely as immigrant workers are considered one of the most vulnerable groups during the COVID-19 economic crisis. California joins Colorado in improving its EITC for ITIN filers amid the pandemic, as the need for additional support for low-wage workers grows to an all-time high.

To learn more about other state-level credits across the country, visit our 50-state map here.