States are leading the way in making the EITC more inclusive for immigrant communities, many of whom are barred from accessing the federal EITC. This summer, Colorado, along with shepherding a state increase from 10 to 15 percent of the federal credit, became the first state to allow all state ITIN filers to claim the EITC. California’s EITC, not long before, became available to ITIN filers with young children under six, and the California Senate is now considering legislation to expand eligibility to all of the state’s ITIN filers.
As Samantha Waxman of the Center on Budget and Policy Priorities writes: States should follow the recent lead of California and Colorado and make their state Earned Income Tax Credits (EITCs) more inclusive for people regardless of their immigration status. That would help expand economic opportunity for all their residents and support essential workers — disproportionately immigrants — who are earning low pay during the pandemic.