Tax day 2020 arrived this week, and with it some exciting news from Colorado as it becomes the first state to expand EITC eligibility to taxpayers with Individual Taxpayer Identification Numbers (ITINs), a major step toward making the EITC more inclusive for immigrant families and enhancing the credit’s impact.
The EITC is a financial lifeline for millions, which is even more critical amidst this current health and economic crisis. The federal tax code, however, discriminates against many taxpaying immigrants by barring access to the EITC.
States are recognizing the contributions that undocumented immigrants are making to state revenues and budgets and are working toward more inclusive tax policies. Colorado’s expansion of its EITC eligibility is expected to boost the income of up to 47,190 workers across the state, a welcome trend in the face of the federal response to COVID-19 that largely excluded undocumented immigrants.
Francine Lipman, Professor of Law at the University of Nevada, Las Vegas explains in the video below how the tax code essentially forces undocumented immigrants taxpayers to pay a higher tax rate than similarly situations U.S. citizens. (see also our full video series on Equity and the Tax Code):