Two tax incentives for undocumented families are included in the latest budget plan of the Democrats in Sacramento. Also part of the proposed budget is health coverage for older immigrants regardless of their immigration status.

In a statement, Sen. Maria Elena Durazo, D-Los Angeles said, "We must do what we can" to provide a more considerable financial support to Latinos in California who have been left out in the COVID-19 response.

The proposed plan by California Democrats, Napa Valley Registered reported, would "allow tax filers who have Individual Taxpayer Identification Numbers with at least one child" whose age is six or below, to have access to the Earned Income Tax Credit and the Young Child Tax Credit programs or the CalEITC.

The CalEITC

The CalEITC is designed for individuals with low income and are employed. It provides the beneficiaries with a refund or cuts their tax owed. More so, one who qualifies for this credit and has a child whose age is six years or younger, he may also apply for the "Young Child Tax Credit.

Together, based on the program's overview, both state credits can provide hundreds or even thousands of dollars in the qualified receivers' pocket. But to be eligible for, and claim the two programs, one needs to file his state tax return.

The Young Child Tax Credit was introduced in the tax year 2019. One who qualifies for CaIEITC and has a child below six years of age by the end of the tax year may be eligible for up to $1,000 through this program.

Meanwhile, the Internal Revenue Service or IRS issues ITINs to an individual who is not qualified to secure Social Security Numbers or SSN so they can comply with the US tax laws. 

According to the IRS guideline, ITINs do not qualify dependents to receive the Earned Income Tax Credit programs, neither do they provide Social Security benefits.

Medical Coverage for Undocumented Elderly

The Medi-Cal expansion, which was part of the January budget of Gov. Gavin Newsom, was designed to provide medical coverage to undocumented elderly individuals whose ages are 65 and above.

This benefit's start date would not start until January 2022, and Gov. Newsom has the power to postpone or defer the launch depending on the ability of the budget to afford the expenditure.

Undocumented immigrants working and filing taxes, according to California Immigrant Policy Center economic justice policy manager, Sasha Feldstein, are not qualified for the "federal stimulus relief for unemployment insurance."

She added the tax breaks would function as a "critical resource" for households. As essential workers, Durazo continued, the "COVID-19 economic shutdown has significantly impacted immigrant communities."

Black Americans and Latinos are among the most affected by the virus. Relatively, based on the data gathered by the California Department of health, California Latinos comprise almost 39 percent of the population of the state, "yet account for more than 50 percent of the COVID-19 cases of the state.

The Medi-Cal and tax credit expansion takes place after Gov. Newsom's announcement of the first-ever plan for the nation to provide COVID-19 assistance to the undocumented immigrants of California, who, he stated, comprise 10 percent of the workforce of the state.

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