Foster Youth Have Until October to Claim the Foster Youth Tax Credit  

April 15 has passed, but there is plenty of time for foster youth to file their 2023 taxes and claim the Foster Youth Tax Credit (FYTC). That is because the State of California provides all tax filers with an automatic 6-month extension to file.  

The FYTC is a $1,117 refundable tax credit available to an individual who was in foster care on or after their 13th birthday. As of April 20, 2024, a total of 4,271 individuals have claimed a total of $4.6 million from the FYTC. This is 11% more youth that claimed it at the same time last year. A report issued by John Burton Advocates for Youth (JBAY) in 2023 found that the FYTC increases average income of recipients by 13% and decreased poverty by 7%.  

There are three key resources to help youth claim the FYTC. The first is a self-filing tool that provides in-depth instructions on how to file taxes and claim the FYTC. The second is an informational flyer. The third is a roster of Volunteer Income Tax Assistance Centers, where youth can receive in-person or virtual assistance.  

For more information, follow this link. If you are working with a youth and having trouble accessing assistance, reach out to iFoster through phone (855-936-7837), email, or by filling out an online Need Request. 

Advocates Recommend Security Deposits, College Tours and More to Spend $15 Million ILP Augmentation by January 2025

Prompted by California’s receipt of an additional $15 million in federal Independent Living Program (ILP) funding, Youth Law Center released a resource with input from Children Now and John Burton Advocates for Youth (JBAY), providing recommendations and guidance to county child welfare agencies on the use of these funds. County ILPs have until September 30, 2024 to obligate the funds and until January 2025 to liquidate the funds.

The resource outlines the broad flexibility of Chafee funds, highlights lessons learned from the pandemic about direct financial assistance to youth and the expanded use of technology for outreach and engagement, discusses leveraging Chafee funds to address the housing crisis, provides youth insights on ILP reform, and offers examples of Chafee fund uses promoting innovation and program enhancement.

There are several strategies of note, including using these one-time Chafee funds to support youth with security deposits, first month’s rent, and other move-in costs, and incentivizing landlords to rent to youth with Foster Youth to Independence (FYI) vouchers. Several education-focused activities are recommended such as college tours, financial aid workshops and application support. The resource also highlights incentivizing activities such as filing taxes to ensure youth receive the Foster Youth Tax Credit, by providing a gift card to each youth who files. 

This $15 million was derived from unused Chafee funds allocated during the pandemic and was provided in addition to California’s $16.6 million allocation for 2023. The California Department of Social Services is distributing the additional funds directly to county ILPs.

New FAFSA Data Reveals a 14% Increase in Unaccompanied Homeless Youth Students Who Are Unverified Since 20-21

The National Center for Homeless Education (NCHE) has released new FAFSA data from the 2022-2023 application cycle on independent student status for unaccompanied homeless youth (UHY) - youth experiencing homelessness and not in the care of a parent or guardian. Independent status allows these students to complete the FAFSA without reporting parental information, ensuring they have access to the greatest amount of financial aid to support their college aspirations.

According to the most recent application cycle data (2022-2023), 36,011 unaccompanied homeless youth in the United States were verified through the FAFSA, representing an almost 4% decrease in verified UHY compared to the 2020-2021 application cycle. California has consistently had the greatest number of these youth, with nearly 15% of the total youth being verified in California. 

UHY can be determined to have independent status through verification by an agency or by a college financial aid administrator. High schools and school districts continue to be the primary agency of verification (over 60%), however in the recent application year the percentage of high schools and districts doing verification has dropped slightly as increased verifications are being completed by homeless service providers and college financial aid administrators. The number of applicants who indicated homeless status on their FAFSA but who were not verified has grown in recent years, increasing by nearly 14% from the 2020-2021 application cycle and by more than 50% compared to the 2018-2019 application cycle. To review available FAFSA data for UHY, click here.

May 22 Webinar to Feature Impact of Legislation to Reduce the Commercial Sexual Exploitation of Children 

The Alliance for Children’s Rights (ACR) will host a webinar on Wednesday, May 22 at 10 am highlighting information from the report "Evaluating California's Efforts to Address the Commercial Sexual Exploitation of Children." 

The report provides information about the impact of state legislation passed in 2014 that created the state's Opt-In Commercially Sexually Exploited Child (CSEC) Program. This program gives participating county child welfare agencies guidance and funding to prevent and intervene on behalf of children who are at risk of experiencing Commercial Sexual Exploitation (CSE).  

The California Department of Social Services (CDSS) contracted with the University of California, Berkeley and their partner, the Urban Institute, to complete an evaluation of California's CSEC program. Information from the evaluation will be presented by the CDSS Safety and Early Intervention Bureau and UC Berkeley staff. To register, follow this link. 

Upcoming Webinars, Training, and Events

• Coalition to Protect Foster Youth in the State Budget
• A Toolkit for Implementing AB 789
• 2024 Blueprint For Success Conference

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