Boosting Economic Security by Helping Young People Access Tax Refunds and Credits in California
The Journey to Success Campaign advocates for federal policy change to achieve better outcomes for youth who have experienced foster care. Many of our recommendations include policies and practices that are already being implemented in states and communities across the country, but could benefit from being available to all youth who spend time in foster care. Our Spotlight on Success series highlights programs and policies that exemplify the recommendations in the Journey to Success policy framework.
When young people transition from the foster care system, they often don’t have the safety net needed to meet everyday expenses such as housing, food, clothes, transportation, or insurance. Many young people also have very little cushion to withstand a financial crisis, and are often not taught about finances and provided skills to budget, save, and file taxes. For many young people, this is their first time being on their own and having to manage money, and the learning curve can be daunting. Youth with foster care experience may be eligible for significant tax refunds and credits, but may not be aware of these opportunities or know how to access them.
The California Foster Youth Tax Project, a partnership between John Burton Advocates for Youth (JBAY) and 22 California counties, works to raise awareness and provide targeted tax assistance to young people who were in foster care or homeless. Youth across California counties can receive in person or virtual assistance filing their taxes, and JBAY has also created tax filing guides for youth in California. The goal is to ensure that these young people receive tax refunds available to them, and also claim the Earned Income Tax Credit, child tax credit, and other tax benefits to which they may be entitled.
The project started in 2020 as a pilot in Santa Clara county, in which 45 young people received assistance, leading to $145,000 in refunds. It is supported by numerous funders including Conrad Hilton Foundation, Golden State Opportunity, Pritzker Foster Care Initiative, Tipping Point Community, Walter S. Johnson Foundation, United Way Bay Area, and United Ways of California.
California’s Governor Gavin Newsom, through advocacy by JBAY, the State Controller, and the CalEITC coalition and others, also recently established a Foster Youth Tax Credit, which is a $1,000 refundable tax credit available to young adults ages 18 through 25 who are or were in foster care on or after their 13th birthday.
The CAlifornia Foster Youth Tax Project and Tax Credit are Shining examples of This Journey to Success priority:
