State CTC and EITC
State Tax Credits Exclude Millions of Immigrant Families
12. 19. 2024
Inconsistent rules mean immigrant families miss out on key anti-poverty cash tools
- Immigrant families eligible to receive state EITC, regardless of status
- Immigrant families eligible to receive state CTC, regardless of status
- Immigrant families eligible to receive both state CTC and EITC, regardless of status
Statewide Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) programs are critical tools for alleviating poverty, yet their effectiveness is diminished by eligibility exclusions that disproportionately impact immigrant families. Only 10 states and the District of Columbia allow immigrant filers (who file with an Individual Taxpayer Identification or ITIN) to access state-level EITCs, while just 12 states extend CTC eligibility to these families. These exclusions primarily affect undocumented workers and mixed-status families who contribute billions annually in state and local taxes but remain locked out of benefits designed to improve economic security. Documentation hurdles, misunderstandings about eligibility, and fear of immigration consequences further depress take-up rates, even among eligible families. These exclusions exacerbate economic inequities, denying families resources to afford essentials like housing, food, and healthcare. By expanding statewide programs to include all residents regardless of immigration status, states can close these gaps, lift more families out of poverty, and stimulate local economies.