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

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, a continuously appropriated fund, 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, in conformity with federal income tax laws, disallows the credit to an eligible individual with a qualifying child if the individual does not include on the tax return the social security numbers of that individual, the individual's spouse if married, and any qualifying child of the individual. Existing law, for purposes of this disallowance and in conformity with federal income tax laws, excludes specified social security numbers, including those issued to individuals who are applicants for or recipients of benefits under any program financed in whole or in part from federal funds. 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 an amount equal to $1,176 multiplied by the earned income tax credit adjustment factor, not to exceed $1,000 per taxable year, and requires amounts of this credit in excess of the qualified taxpayer's tax liability to be paid to the qualified taxpayer from the Tax Relief and Refund Account, a continuously appropriated fund. That law, for purposes of that refundable young child tax credit, defines a qualified taxpayer to mean an eligible individual who has been allowed an earned income tax credit and has at least one qualifying child younger than 6 years old, as specified. Existing law specifies that the earned income tax credit and young child tax credit are only operative for taxable years for which resources are authorized in the annual Budget Act for the Franchise Tax Board to oversee and audit returns associated with the earned income tax credit. This bill, for taxable years beginning on or after January 1, 2020, would remove the exclusion of the above-described social security numbers, and would additionally allow 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. By expanding the allowance of the earned income tax credit to additional eligible individuals, this bill would also expand the allowance of the refundable young child tax credit to additional qualified taxpayers. By authorizing payments to additional taxpayers from the continuously appropriated Tax Relief and Refund Account for amounts of earned income tax credits and young child tax credits in excess of personal income tax liabilities, this 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.