Personal income taxes: federal individual taxpayer identification number: earned income tax credits: young child tax credit.

The Personal Income Tax Law, beginning on or after January 1, 2015, in modified conformity with federal income tax laws, allows 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. The law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases and provides alternative calculation factors under specified circumstances. Existing law, for taxable years beginning on or after January 1, 2020, allows the earned income tax credit to an eligible individual who has, or whose spouse has, a qualifying child younger than 6 years old, as specified, if that individual includes on the tax return the federal individual taxpayer identification number of the eligible individual, eligible individual's spouse if married, and a qualifying child who is younger than 6 years old, as specified. The Personal Income Tax Law allows a refundable young child tax credit against the taxes imposed under that law, for each taxable year beginning on or after January 1, 2019, to a qualified taxpayer in specified amount multiplied by the earned income tax credit adjustment factor, as provided. This bill, for each taxable year beginning on or after January 1, 2020, would remove the above-described limitations on the use of a federal individual taxpayer identification number in order to be eligible for the earned income tax credit and the refundable young child tax credit, subject to specified requirements, including the provision of specified documents to the Franchise Tax Board. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount to be paid as an earned income tax credit and as a young child tax credit in excess of any tax liabilities. By authorizing additional payments from this account, the bill would make an appropriation. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.