Our Work – Economic Security
Reducing Poverty
In 2022, JBAY sponsored a proposal that established the California Foster Youth Tax Credit, a $1,154 refundable state tax credit for current and former foster youth.
To promote access to this new credit, JBAY is leading the California Foster Youth Tax Project, consisting of three main strategies achieved through state policy advocacy, training and technical assistance, and research and data analysis:
1) Establish and institutionalize education and outreach strategies at the county level to increase education and awareness about the Foster Youth Tax Credit.
2) Expand free tax assistance for current and former foster youth through IRS-certified Volunteer Income Tax Assistance (VITA) sites.
3) Make available a wide range of resources for youth and their supporters that help youth prepare to file taxes and to self-file their taxes for free.
California Foster Youth Tax Credit
The 2022-23 state budget includes $21 million in ongoing funding to establish the Foster Youth Tax Credit, a refundable tax credit that aims to boost the income of and reduce poverty among current and former foster youth ages 18 through 25 who were in care on or after their 13th birthday. Effective January 1, 2023, eligible youth who file their California state tax return and claim the Foster Youth Tax Credit will receive the credit. The Foster Youth Tax Credit is a program of the California Earned Income Tax Credit, a refundable tax credit funded with $1.1 billion that helps low-income workers and families.
Institutionalizing Education & Outreach
In 2025, JBAY is sponsoring SB 624, introduced by Senator Anna Caballero to increase access to the Foster Youth Tax Credit through institutionalization of education and outreach strategies at the county level. SB 624 would:
- Require county child welfare agencies and probation departments to annually mail information about the Foster Youth Tax Credit and tax filing to non-minor dependents.
- Require the California Department of Social Services to issue bi-annual guidance to counties on best practices for Foster Youth Tax Credit implementation.
Free Tax Assistance Sites
JBAY has partnered with community-based organizations across California to establish and operate IRS-certified Volunteer Income Tax Assistance (VITA) sites specially equipped to assist current and former foster youth with filing their taxes for free.
JBAY also provides training to general VITA sites to ensure they’re equipped to assist youth with claiming the Foster Youth Tax Credit. Identify VITA sites using JBAY’s roster.
Informational & Training Resources
JBAY has developed informational and training resources for a wide range of stakeholders, including VITA volunteers; county child welfare and probation personnel; community-based providers, caregivers, college campus personnel, and other supportive adults; and youth themselves. These resources are designed to help youth prepare for filing, secure an appointment for assistance or self-file with confidence, learn about the benefits of tax filing, and ensure stakeholders know how to claim the Foster Youth Tax Credit.
