Nonminor dependents: tax guidance.

Senator Caballero, along with principal and secondary authors, advances the Foster Outreach and Support for Tax Education Readiness Act to create a structured framework for guiding counties in helping nonminor dependents file state and federal tax returns and access the foster youth tax credit, without altering existing tax provisions or independent living program age parameters. The measure would add a new statutory provision obligating the state department to issue guidance to county welfare departments and juvenile probation departments by a firm deadline, with updates at least every two years, and to require annual mailings to every nonminor dependent that describe tax-filing steps and access to the foster youth credit.

Key mechanisms include a detailed guidance package that must cover eligibility and the maximum credit, county responsibilities, outreach strategies, IRS resources for locating local VITA providers, promising county practices for communicating with eligible youth, and resources from nonprofit organizations and other state agencies. Counties would then be required to annually mail information to every nonminor dependent between November 1 and January 31, including the eligibility criteria for the foster youth credit, the forthcoming credit amount, notices about other potential credits, the location and setup for IRS-certified VITA services, and no-cost self-filing resources. The guidance content references existing rules governing the foster youth tax credit and does not create new credits or modify the underlying tax code.

From an implementation standpoint, the act frames these county activities as a local-mandated program subject to the state’s provision of funding for increased local costs; there is no new statewide appropriation included in the measure. It also notes that no changes to the Independent Living Program’s age parameters or to the foster care state plan are contemplated, while aligning guidance and outreach with current tax-credit provisions and accompanying outreach infrastructure.

The measure places emphasis on information dissemination and interagency collaboration, requiring coordination with IRS-certified VITA providers, nonprofit partners, and other state agencies to support outreach and education about the foster youth tax credit and related credits. Lead responsibility for guidance issuance lies with the state department, with counties implementing annual mailings and outreach within the established November–January window, all within the framework of existing Realignment cost provisions and local-budget mechanisms.