California Expands EITC, YCTC Access to All Immigrants: What You Need to Know

According to a report from CBS San Francisco, California Governor Gavin Newsom has signed a bill extending CalEITC and YCTC access to all state residents—including undocumented immigrants. Beyond creating a more just and fair tax system, it is an important step to provide much needed economic relief to undocumented workers who have been disproportionately affected by COVID-19.

At Goldstein Immigration Lawyers, our Los Angeles immigration law firm is proud to advocate for the interests of immigrants and their families. We want to make sure you know your rights under state and federal law. In this article, our immigration lawyers highlight three key things you should know about California’s tax reform bill.

Three Things to Know About California’s New Tax Law

CalEITC is a Refundable Tax Credit for Low and Middle Income Californians

The California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit (YCTC) were established in 2015 to provide additional financial relief to low and middle income families in our state. A refundable tax credit, CalEITC provides tax relief and cash payments to many workers in California. Modelled after the federal Earned Income Tax Credit (EITC), CalEITC is widely recognized as an important tool to fight poverty. The YCTC is targeted towards low and middle income families with children under the age of six.

Undocumented Immigrants Were Initially Left Out of the Program

Unfortunately, undocumented immigrants—who work performing some of the most essential jobs in or state—were initially left out of the program. As the American Prospect notes, California lawmakers had the opportunity to help mitigate poverty for undocumented immigrants, but initially failed to do so. Thankfully, the gap has now been rectified. Our state is once again leading the nation in creating a more just economic system for all workers.

The New Law Creates a More Fair System

With the passage of the new tax reform bill, California is providing all workers, including undocumented immigrants, with access to equal tax benefits. Qualifying undocumented immigrants can now access a refundable tax payment through the California Earned Income Tax Credit and the Young Child Tax Credit (YCTC). The reform bill is especially important in this moment—as so many families are struggling with the fallout from the COVID-19 pandemic.

As explained by the Office of Governor Gavin Newsom, nearly 300,000 undocumented Californians have lost their jobs due to COVID-19 and “immigrant women have lost their jobs at a disproportionate rate.” As undocumented immigrants are left out of so many federal programs, it is crucial that California steps up to help relieve some of the financial burden.

Do You Need Immigration Law Advice in Southern California?

We can help. At Goldstein Immigration Lawyers, our Los Angeles immigration attorneys provide the highest level of legal representation to our clients. We handle the complete range of immigration cases. Call us now for confidential legal guidance. Our law firm serves communities throughout Southern California, including Los Angeles, Glendale, Pasadena, Cerritos, Downey, and Monterey Park.