An estimated 1 million California households that are struggling amid the COVID-19 pandemic have yet to tap into two state programs aimed at keeping them out of poverty.
The Golden State Stimulus provides low-income Californians and others a one-time payment of $600 for those who make less than $30,000 a year and filed tax returns using a Social Security number.
Others, including undocumented residents who accessed the California Earned Income Tax Credit, made less than $75,000 and filed using an individual taxpayer identification number, can get $1,200.
To qualify, residents cannot be claimed as a dependent and must be a state resident who has lived in California for more than half of 2020.
The California Earned Income Tax Credit is a yearly tax credit for working people making under $30,000. Credits range from $243 to just over $3,000.
Both programs are available to California residents who have filed a state income tax return. Stimulus checks are automatically sent out to residents who have filed their tax returns, but they must apply for the tax credits.
The May 17 filing deadline is just around the corner, but residents have until Oct. 15 to apply for the credits.
Gov. Gavin Newsom unveiled plans this week to deliver a second round of $600 stimulus checks for middle-class residents and low-income families in an effort to speed up California’s recovery from the COVID-19 pandemic.
The programs can provide support to families hit hard by the pandemic to pay for rent, bills and other daily expenses. With communities of color and women often working low-wage jobs, industry experts say earned income tax credits can help millions of families every year and are an important tool for advancing racial and gender equity.
Vanessa Hernandez and her family tapped into both programs, which have helped keep their household afloat. They filed their taxes in early March.
“I clean residential buildings, but I couldn’t work for a while during the pandemic,” the 39-year-old Los Angeles resident said. “And my husband works full-time as a demolition worker but was laid off in March of last year and didn’t go back to work until July.”
They filed their income taxes separately, with Hernandez claiming her youngest 4-year-old daughter and her husband claiming their two older daughters. They each received $1,200 in stimulus funds and $1,400 in tax credits.
“This has been a big help during the pandemic,” she said. “It’s also affected us emotionally. Now that our daughters hear that we’re OK with food, rent and other expenses … it’s a big relief.”
The state is also working to get money into the pockets of families by encouraging those with an income of less than $66,000 in 2020 to file for free through myfreetaxes.com. That allows them to keep all of their tax credits, rather than paying a company to file for them.
Max Moy-Borgen, an income program manager with United Ways of California, said his organization has worked hard to get the word out on the California Earned Income Tax Credit.
“It gets a lot less attention than the federal earned income tax credit,” he said. “Most tax software programs are set up to include it. You’ll get a ping to let you know you’re eligible. But not all tax providers are great at letting people know about it.”
United Ways has alerted Californians through door-to-door canvassing, text messages, billboards and social media posts.
“It’s a big concern,” Moy-Borgen said. “The state has been very generous since the tax credit was established five years ago. We’ve worked to provide education and outreach.”
Newsom’s second round of $600 stimulus checks would target two-thirds of of the state’s residents. It’s part of his $100-billion “California Comeback Plan,” fueled by an unprecedented $75.7 billion surplus in the state’s general fund projected for the upcoming fiscal year and another $26 billion from the federal coronavirus relief package.
