An estimated 1 million Californians will not receive their full tax refunds this year because the state will intercept the money to pay off debts such as outstanding parking tickets, tolls, court fees, tuition and child support.
California's poorest residents, who qualify for state tax credits, will be hit the hardest as money intended for what Gov. Gavin Newsom has heralded as "the largest anti-poverty cash assistance program in the country" will instead be returned to the government to cover unpaid bills.
Nearly 50% of Californians who had at least a portion of their 2021 tax refunds taken by the state as part of its "offset" collection program earned less than $30,000 a year and filed for the California Earned Income Tax Credit or Young Child Tax Credit, according to data compiled by the Franchise Tax Board.
