HB 2819 unearned tax credit

04/20/2021
HB 2819
VOTE:NO
In Committee
Work Session 04/22/2021 3:15pm
Status (overview) of bill:https://olis.leg.state.or.us/liz/2021R1/Measures/Overview/HB2819
Committee assigned to bill:https://olis.leg.state.or.us/liz/2021R1/Committees/HREV/Overview

Contact committee directly


This bill allows otherwise qualified individual to claim earned income tax credit under individual taxpayer identification number in lieu of Social Security number. Applies to tax years beginning on or after January 1, 2022, and before January 1, 2026

Personal Choice and Responsibility
Individual Taxpayer Identification Number – ITINs cannot be used to qualify for the federal earned income tax credit (EITC) and as Oregon’s EITC is a percentage of the federal credit, taxpayers using an ITIN do not presently qualify for the Oregon EITC. To qualify for the earned income tax credit, taxpayers must meet a number of requirements including filing an income tax return, having earned income, having limited or no investment income, meeting child relationship requirements and providing Social Security numbers for all individuals reported on the tax return. This bill detaches the EITC from federal requirements.

Fiscal Responsibility
Redistribution of wealth. HB 2819 proposes to give free money to undocumented residents that have no earned income that don’t qualify for a Social Security number like farmworkers or unemployed illegals. It even extends to non-residents that have earned income in Oregon. Giving out free money without a specific need for the request is fiscally not responsible.

Limited Government
The federal earned income tax credit (EITC) is a refundable tax credit available to eligible individuals of with low earnings. As the credit is refundable, the credit first reduces an individual’s tax liability to zero, the remaining credit amount is paid directly to the taxpayer as a tax refund. Oregon’s earned income tax credit is a percentage of the federal credit and is equal to 9% of federal credit amount or 12% for taxpayers with a dependent under the age of three at the close of the tax year. As Oregon’s credit is a percentage of the federal credit, Oregon’s credit inherently reflects the design of the federal EITC. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS). The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN).

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