Nonminor dependents: tax guidance.

Plain English Breakdown

The official source does not specify whether updates to the guidelines will occur every two years or more frequently based on need.

Helping Older Foster Youth with Taxes

The law requires state agencies to create guidelines and send information annually to help nonminor dependents file taxes and access the foster youth tax credit.

What This Bill Does

• Requires the State Department of Social Services to issue guidance by July 30, 2026, for county welfare departments and juvenile probation departments to support nonminor dependents in filing state and federal income taxes and accessing the foster youth tax credit.
• Includes information on eligibility requirements and maximum credit amounts for the foster youth tax credit in the guidance.
• Requires annual mailings from county welfare departments and juvenile probation departments to all nonminor dependents with details about filing taxes, including the foster youth tax credit and local Volunteer Income Tax Assistance sites.

Who It Names or Affects

• Nonminor dependents who are former foster youth up to age 23
• County welfare departments and juvenile probation departments

Terms To Know

nonminor dependent

Former foster youth aged 18-23 who still receive support from the state.

foster youth tax credit

A refundable tax credit for qualified taxpayers, including former foster youth.

Limits and Unknowns

• The bill does not specify how much funding will be provided to county welfare departments and juvenile probation departments.
• It is unclear what the exact penalties are if these agencies do not comply with the new requirements.

Official Summary Text

SB 624, Caballero.
Nonminor dependents: tax guidance.
Existing law establishes the Independent Living Program (ILP), that, among its purposes, provides training in daily living skills, budgeting, locating and maintaining housing, and career planning for foster youth up to 21 years of age. Existing federal law authorizes a state, under certain circumstances, to expand eligibility for the ILP to former foster youth who have not attained 23 years of age. Existing law requires the State Department of Social Services, with the approval of the federal government, to amend the foster care state plan to permit all eligible children to be served by the ILP up to 21 years of age.
The Personal Income Tax Law allows a refundable foster youth tax credit for taxable years beginning on or after January 1, 2022, to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment
factor, as provided.
This bill, the Foster Outreach and Support for Tax Education Readiness (FOSTER) Act, would require, by no later than July 30, 2026, the department to issue guidance to county welfare departments and juvenile probation departments with information to support best practices for nonminor dependents to file state and federal income tax returns and
to access the foster youth tax credit. The bill would require the guidance to be updated as needed and reissued no less than every 2 years. The bill would specify the information to be included in the guidance issued, including, but not limited to, the eligibility requirements for the foster youth tax credit and the maximum credit available, outreach strategies to increase awareness among nonminor dependents and former foster youth about the foster youth tax credit, and resources from the Internal
Revenue Service website for identifying local Volunteer Income Tax Assistance providers. The bill would require county welfare departments and juvenile probation departments to annually send by mail to every nonminor dependent information about filing state and federal income tax returns and, among other things, the foster youth tax credit and information about local Volunteer Income Tax Assistance sites, as specified. By increasing the duties of county welfare departments and juvenile probation departments, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF