Foster Youth Tax Credit Public Service Bulletin
January 4, 2023
Purpose of Bulletin
To notify taxpayers of the Foster Youth Tax Credit (FYTC) enacted under SB 201 (Stats. 2022, Ch. 72).
For taxable years beginning on or after January 1, 2022, the FYTC provides up to $1,083 per eligible individual or up to $2,166 if both primary taxpayer and spouse/RDP qualify. This is a new refundable tax credit, similar to the California Earned Income Tax Credit (CalEITC) and the Young Child Tax Credit.
To qualify for the FYTC, the taxpayer must meet all the following:
- Qualify for the CALEITC
- Age 18 to 25 at the end of the tax year
- In California foster care at age 13 or older and placed through the California foster care system
- Claim the credit on the 2022 FTB 3514 form, California Earned Income Tax Credit, or follow the instructions on your tax software
- Satisfy foster care verification requirement
Your foster youth status will be verified in one of three ways:
- Check the consent box on line 33 of the FTB 3514 form or follow the instructions specific to your tax software. Providing this consent allows the California Department of Social Services (CDSS) to attempt to verify your foster youth status using a statewide database.
- Add your foster youth verification letter when paper filing or upload the letter (if possible) when e-filing.
- If neither option one nor two of the list applies, FTB will mail you a letter requesting that you provide verification.
You must file a state tax return to claim this credit. The credit is claimed on form FTB 3514.