Undocumented California residents who file taxes with the Tax Identification Number ( ITIN) may claim two important tax reliefs as established by the annual budget that begins to take effect from this first of July.
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As Governor Gavin Newsom’s new budget goes into effect, undocumented taxpayers who declare at least one child under the age of six may claim the California Earned Income Tax Credit (CalEITC) and the Tax Credit for Minors (YCTC).
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The CalEITC profit represents close to $ 3,000 per person and the California YCTC means a refund of $ 1,000.
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“I think these benefits that California immigrants deserve recognize their tremendous contribution to the economy,” Victor Narro, Project Director at the University of California Los Angeles (UCLA) Labor Center, told Univision News. “With their work effort and as consumers, immigrants make the state’s economy strong, and the least they deserve is that they be offered this type of program.”
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For Alissa Anderson, an analyst at the nonprofit California Center for Policy and Budget, the inclusion of tax relief for undocumented immigrants may have been influenced by the crisis in the covid-19.
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“We know that immigrants have been hit especially hard by the economic crisis (caused by the coronavirus). This crisis is really highlighting that there is no time for inequality policies,” Anderson said in a statement forwarded to EFE.
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However, critics of the decision do not see that the hit of the pandemic to the Golden State budget allows to expand benefits for the undocumented when California faces unemployment of 16.3% and a large deficit.
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“This would have been better done in a future year, especially when we are facing a deficit of $ 54 billion.”, Republican Assemblyman Jay Obernolte declared, upon learning of the new budget inclusion.
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The $ 202.1 billion spending item signed on Monday by Governor Gavin Newsom seeks to “promote economic recovery while closing a $ 54.3 billion deficit caused by the covid-19 recession,” the office explained. of the president.
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The cost of offering these tax breaks for undocumented immigrants is $ 65 million, according to the California Office of Legislative Analysis.
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Between 32,000 and 46,000 families with undocumented immigrants will be able to claim the YCTC benefit in California, according to a calculation by the California Budget and Policy Center.
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52% of all people eligible for CalEITC in 2019 were Latinos, as were 66% of those who qualified for the Children’s Tax Credit that year, according to the center.
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“This decision to recognize California’s undocumented immigrants means that the Sanctuary State turns rhetoric into action for its immigrant workers,” Juan José Gutiérrez, executive director of One Stop Immigration Los Angeles, told Univision Noticias. “It also represents an impetus for Latino voters to go to the polls to make a change in the federal government, and for better times for all immigrants to come as the example California is setting.”
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