Taxation: Earned Income Tax Credit: young child tax credit: foster youth tax credit: filing.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows a California Earned Income Tax Credit (CalEITC) 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. The Personal Income Tax Law also allows a young child tax credit and a foster youth tax credit against the taxes imposed under that law to qualified taxpayers in a specified amount multiplied by the earned income tax credit adjustment factor, and allows a payment from the Tax Relief and Refund Account for an amount in excess of tax liability. The Personal Income Tax Law requires an individual taxable under that law to make a return to the Franchise Tax Board stating specifically the items of the individual's gross income from all sources and the deductions and credits allowable, as prescribed. Existing law requires the State Department of Social Services and the State Department of Health Care Services to exchange data with the Franchise Tax Board, including the names, addresses, and contact information of individuals that may qualify for the CalEITC, and authorizes the Franchise Tax Board to disclose individual income tax information for taxable years beginning on or after January 1, 2020, and before January 1, 2022, to the State Department of Social Services and the State Department of Health Care Services, and requires all data provided to remain confidential and be used only for specified purposes, including informing state residents of the availability of specified services and federal and state antipoverty tax credits, and for providing an estimate of potential state antipoverty tax credits. Existing law provides that unauthorized disclosure of this information is a misdemeanor. This bill, for taxable years beginning on or after January 1, 2026, would authorize a qualified individual, who cannot claim withholding or other credits, to claim the earned income tax credit, the young child tax credit, or the foster youth tax credit on a form that does not require the qualified individual to file an individual income tax return. The bill would exempt the Franchise Tax Board from existing contracting laws and specified approvals and oversight in administration relating to the form described above. This bill would additionally allow the State Department of Social Services and the State Department of Health Care Services to exchange data with the Franchise Tax Board for purposes of the form described above. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. This bill would incorporate additional changes to Section 19551.3 of the Revenue and Taxation Code proposed by SB 565 to be operative only if this bill and SB 565 are enacted and this bill is enacted last.