Personal income taxes: caregiver tax credit.

The Personal Income Tax Law allows various credits against the taxes imposed by that law, including an earned income tax credit against personal income tax and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability to an eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor, as specified. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill for taxable years beginning on or after January 1, 2019, and before January 1, 2024, would allow to an eligible caregiver, defined to mean an individual eligible to claim an earned income tax credit but who is not required to have earned income and who may claim this credit using a taxpayer identification number or a social security number, who provides uncompensated care for a qualified dependent, as defined, a credit amount of no less than $1,200, as provided. The bill would limit the allowance of this credit to those taxable years in which the earned income tax credit is operative and when the earned income tax credit adjustment factor for a taxable year is not 0%. The bill would additionally require, for taxable years beginning on or after January 1, 2019, and before January 1, 2024, for a taxpayer with an allowable credit in excess of tax liability, a payment from the Tax Relief and Refund Account, a continuously appropriated account, to the taxpayer equal to the amount of the allowable credit that is in excess of tax liability, as provided. By authorizing additional payments from this account, this bill would make an appropriation. The bill also would include additional information required for any bill authorizing a new income tax credit.