Covid-19 relief for undocumented workers in California - is it taxable? December 2020 Tax News

While the economic impact payments issued by the Internal Revenue Service provided relief for millions of taxpayers across the country, not all taxpayers qualified to receive these payments. In response, Governor Newsom announced on April 15, 2020, that $125 million in disaster relief assistance would be available for working undocumented Californians impacted by COVID-19 who were ineligible for unemployment insurance benefits and disaster relief, including the CARES Act, due to their immigration status.

For California tax purposes, these payments are not subject to tax. Approximately 150,000 adult Californians received the one-time assistance of $500 per adult with a cap of $1,000 per household to deal with the specific needs arising from the COVID-19 pandemic.