Young Child Tax CreditYCTC

Overview

The Young Child Tax Credit (YCTC) provides a credit up $1,083 per tax return for Californians who qualify for CalEITC and have a child under 6 years old.

NewFor tax year 2022 forward, you may qualify for YCTC with total earned income of zero dollars or less provided all of the following apply:

  • Your total wages, salaries, tips, and other employee compensation (whether subject to California withholding or not), if any, do not exceed $32,490
  • Your total net loss does not exceed $32,490, and
  • You otherwise meet the CalEITC and YCTC requirements

You must claim YCTC on the 2022 FTB 3514 form, California Earned Income Tax Credit, or if you e-file follow your software’s instructions. You may claim YCTC for tax year 2019 forward by filing or amending your state income tax return. However, for tax years prior to 2022 you will only be eligible for YCTC if you meet all CalEITC requirements, including having at least $1 of earned income in the tax year.

Earned income

Earned income is wages, salaries, tips and other employee compensation that is subject to California withholding, or net income from self-employment.

Net loss

A net loss is generated when taxpayers’ losses exceed their income during the tax year. This could apply to gig workers and other self-employed individuals, as well as those with investment, rental, or other losses.

Check if you qualify

Visit our CalEITC homepage to learn more about this credit, related credits you may qualify for, and to use our EITC calculator to estimate your credit.

How to claim

Filing your state tax return is required to claim this credit.

If paper filing, download, complete, and include with your California tax return: