Some Californians Missed Out On Pandemic Tax Breaks, IRS Says

CALIFORNIA — The Internal Revenue Service warned this week that millions of low-income Californians and Americans potentially missed out on pandemic-era rebates.

Nine million people and families who qualify for tax breaks will receive letters, the agency said Thursday.

Having earnings is not a requirement and for those who missed the April filing deadline, they can still file a return to benefit.

"We encourage people who haven't filed a tax return yet for 2021 to review these options. Even if they aren't required to file a tax return, they may still qualify for several important credits," said IRS Commissioner Charles Rettig in a statement. "We don't want people to overlook these tax credits, and the letters will remind people of their potential eligibility and steps they can take."

Families who missed out on the expanded child credit can get up to $3,600 per child, stimulus payments of up to $1,4000 per person and an expanded child and dependent care credit of up to $8,000. Filers may also qualify for a boosted Earned Income Tax Credit.

The letter, which will be sent to nine million households, will be printed in English and Spanish and outlines eligibility requirements for the child tax credit, the earned income tax credit and others.

The child tax credit program, which was expanded during the pandemic, helped tens of millions of kids and their families, and contributed to a 46 percent decline in child poverty since 2020, according to a September report from the Census Bureau.

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Since that program has ended, there are already indications that child poverty is increasing. Columbia University’s Center on Poverty and Social Policy estimates 3.7 million more children were living in poverty by January — a 41 percent increase from December, when families received their last check.

In California, more than half of residents with incomes below $50,000 were struggling to pay for food, housing, and medical costs in March and April. Among those most likely to struggle were Latino and other families of color, according to a report from the California Budget and Policy Center.

What's more, nearly 1.7 of California's children are at risk of falling back into poverty or deeper into poverty this year after federal lawmakers declined to expand the federal child tax, the center also reported.

There are efforts in Congress to make the credit permanently available to all families with children.