Cal EITC and Free Tax Prep Expansion
Shared from United Ways of California
The budget agreement between Governor Brown and the Legislature follows the outlines in the Governor’s May Revise proposal and Senate action, and includes:
- Extending the Cal EITC to young adults age 18-24 and to seniors over age 65.
- Increasing the income eligibility limit to align with the new minimum wage of $12/hour so that a full-time minimum wage worker with dependents would still be eligible (the new income limit would be $24,960 for taxpayers with dependents and $16,800 for taxpayers with no dependents).
- Providing $10 million in funding for Cal EITC outreach and free tax preparation assistance with $5 million going to expand the existing outreach grant program run by the Department of Community Services & Development (CSD) and $5 million for support for free tax prep, assumed to also be distributed by CSD, along with some money for evaluating outreach.
Disappointingly, despite advocacy efforts the final deal excluded eligibility for Cal EITC for the immigrant worker population. The Administration held very strong in their resistance due to the challenges with verifying ITINs, and the reluctance of some members of the Democratic caucus to support investments in immigrant communities certainly didn’t help – the Health4All effort to remove the immigration exclusion from health care coverage for young adults and seniors was also left out of the final deal.