2020 Instructions for Form FTB 3514 California Earned Income Tax Credit

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).

What's New

Expansion for Credits Eligibility – For taxable years beginning on or after January 1, 2020, California expanded Earned Income Tax Credit (EITC) and Young Child Tax Credit (YCTC) eligibility to allow either the federal Individual Tax Identification Number (ITIN) or the Social Security Number (SSN) to be used by all eligible individuals, their spouses, and qualifying children. If an ITIN is used, eligible individuals should provide identifying documents upon request of the Franchise Tax Board (FTB). Any valid SSN can be used, not only those that are valid for work. Additionally, upon receiving a valid SSN, the individual should notify the FTB in the time and manner prescribed by the FTB. The YCTC is available if the eligible individual or spouse has a qualifying child younger than six years old. For more information, see Specific Instructions for line 7 and go to ftb.ca.gov and search for eitc.

Worker Status: Employees and Independent Contractors – Some individuals may be classified as independent contractors for federal purposes and employees for California purposes, which may also cause changes in how their income and deductions are classified. For more information, see General Information B, Differences in California and Federal Law and Specific Instructions, Step 5, line 13 and line 18.

General Information

In general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However, there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540), California Adjustments - Residents, or Schedule CA (540NR), California Adjustments - Nonresidents or Part-Year Residents, and the Business Entity tax booklets.

The instructions provided with California tax forms are a summary of California tax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to include all requirements of the California Revenue and Taxation Code (R&TC) in the instructions. Taxpayers should not consider the instructions as authoritative law.

Registered Domestic Partners (RDPs)

For purposes of California income tax, references to a spouse, husband, or wife also refer to a California RDP, unless otherwise specified. When we use the initials RDP they refer to both a California registered domestic “partner” and a California registered domestic “partnership,” as applicable. For more information on RDPs, get FTB Pub. 737, Tax Information for Registered Domestic Partners.

California Earned Income Tax Credit

The refundable California EITC is available to taxpayers who earned wage income subject to California withholding and/or have net earnings from self-employment. This credit is similar to the federal Earned Income Credit (EIC) but with different income limitations. The CA EITC reduces your California tax obligation, or allows a refund if no California tax is due. You do not need a child to qualify, but must file a California income tax return to claim the credit and attach a completed form FTB 3514, California Earned Income Tax Credit.

Young Child Tax Credit

For taxable years beginning on or after January 1, 2019, the refundable YCTC is available to taxpayers who also qualify for CA EITC and who have at least one qualifying child who is younger than six years old as of the last day of the taxable year. The maximum amount of credit allowable for a qualified taxpayer is $1,000. The credit amount phases out as earned income exceeds the threshold amount of $25,000, and completely phases out at $30,000. For more information, see Step 8, Qualifications for Young Child Tax Credit (YCTC) in the instructions.

A. Purpose

Use form FTB 3514 to determine whether you qualify to claim the credit, provide information about your qualifying children, if applicable, and to figure the amount of your credit.

B. Differences in California and Federal Law

The differences between California and federal law for the Earned Income Tax Credit are as follows:

  • California allows this credit for wage income (wages, salaries, tips and other employee compensation) that is subject to California withholding.
  • If you were a nonresident, you must have earned wage income that is subject to California withholding.
  • Both your earned income and federal adjusted gross income (AGI) must be less than $56,844 to qualify for the federal credit, and less than $30,001 to qualify for the California credit.
  • An eligible individual without a qualifying child is 18 years or older for the California credit.
  • You may elect to include all of your (and/or all of your spouse's/RDP’s if filing jointly) nontaxable military combat pay in earned income for California purposes, whether or not you elect to include it for federal purposes. Get FTB Pub. 1032, Tax Information for Military Personnel, for special rules that apply to military personnel claiming the EITC.
  • California allows this credit to eligible individuals and their spouses who have a valid federal ITIN or who have qualifying children who have a valid federal ITIN.

Specific Instructions

If certain requirements are met, you or your eligible spouse may claim the EITC even if you do not have a valid SSN and instead have a valid federal ITIN. This also applies for the YCTC. If you have a valid federal ITIN, enter it in the Your SSN or ITIN field at the top of the form. For more information, see the What's New Section and specific instructions for line 7.

If certain requirements are met, you may claim the EITC even if you do not have a qualifying child. The amount of the credit is greater if you have a qualifying child, and increases with each child that qualifies, up to a maximum of three children. Follow Step 1 through Step 7 below to determine if you qualify for the credit and to figure the amount of the credit.

If your EITC was reduced or disallowed for any reason other than a math or clerical error and you now want to take the EITC then answer “Yes” on line 1b within the form and follow Step 1 through Step 7 below to determine if you qualify for the credit.

Attach the completed form FTB 3514 to your Form 540 or 540 2EZ, California Resident Income Tax Return, or Form 540NR, California Nonresident or Part-Year Resident Income Tax Return, if you claim the California EITC.

Step 1  Qualifications for All Filers

  1. Federal AGI
    In taxable year 2020, is the amount on federal Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for Seniors, line 11 less than 30,001?
    Yes   Continue.
    No   Stop here, you cannot take the credit.
  2. Do you, and your spouse/RDP if filing a joint return, have a valid SSN or federal ITIN? See line 7, "Valid SSN" or "Valid ITIN" within Step 3, Qualifying Child, for a full definition.
    Yes   If you have a qualifying child continue to question c. If you do not have a qualifying child, continue to question d.
    No   Stop here, you cannot take the credit.
  3. Do you, and your spouse/RDP if filing a joint return, have a qualifying child who has a valid SSN or federal ITIN?
    Yes   Continue to question d.
    No   You may qualify for the EITC as a filer without a qualifying child, continue to question d.
  4. Is your filing status married filing separately?
    Yes   Stop here, you cannot take the credit.
    No   Continue.
  5. Are you filing federal Form 2555, Foreign Earned Income?
    Yes   Stop here, you cannot take the credit.
    No   Continue.
  6. Were you or your spouse/RDP a nonresident alien for any part of 2020?
    Yes   If your filing status is married filing jointly, continue. Otherwise, stop here; you cannot take the EITC.
    No   Continue.
  7. If you are filing Form 540NR, did you and your spouse/RDP live in California for at least 184 days?
    Yes   Continue.
    No   Stop here, you cannot take the credit.
  8. Complete line 1, line 2, and line 3 on the form. Then go to Step 2.

Step 2  Investment Income

If you are filing Form 540 or Form 540NR complete Worksheet 1. If you are filing Form 540 2EZ complete Worksheet 2.

Worksheet 1 – Investment Income Form 540 and Form 540NR Filers

Interest and Dividends

  1. Add and enter the amounts from federal Form 1040 or 1040-SR, line 2a and line 2b.
  2. Enter the amount from federal Form 8814, Parents’ Election to Report Child’s Interest and Dividends, line 1b.
  3. Enter the amount from federal Form 1040 or 1040-SR, line 3b.
  4. Enter any amounts from federal Form 8814, line 12 for child's interest and dividends.

Capital Gain Net Income

  1. Enter the amount from federal Form 1040 or 1040-SR, line 7. If the result is less than zero, enter -0-.
  2. Enter the gain from federal Form 4797 Sales of Business Property, line 7. If the amount on that line is a loss, enter -0-. (But, if you completed federal Form 4797, line 8 and line 9, enter the amount from line 9 instead).
  3. Subtract line 6 from line 5. (If the result is less than zero, enter -0-).

Passive Activities

  1. Enter the total of net income from passive activities included on federal Schedule 1 (Form 1040), Additional Income and Adjustments to Income, line 5.

Other Activities

  1. Enter any income from the rental of personal property included on federal Schedule 1 (Form 1040), line 8. If the result is zero or less, enter -0-.
  2. Enter any expenses related to the rental of personal property included as a write‑in adjustment on federal Schedule 1 (Form 1040), line 22.
  3. Subtract line 10 from line 9. (If the result is less than zero, enter -0-).

Investment Income

  1. Add the amounts on lines 1, 2, 3, 4, 7, 8, and 11.
    Enter the total.
    This is your investment income.
  2. Is the amount on line 12 more than $3,882?
    Yes   Stop here, you cannot take the credit.
    No   Enter the amount from line 12 on form FTB 3514, line 4. Go to Step 3.

Worksheet 2 – Investment Income Form 540 2EZ Filer

  1. Taxable interest. Enter the amount from Form 540 2EZ, line 10.
  2. Nontaxable interest. Add and enter the amounts from federal Form 1099-INT, box 3 and box 8, and the amount from federal Form 1099-DIV, box 11.
  3. Dividends. Enter the amount from Form 540 2EZ, line 11.
  4. Capital gain net income. Enter the amount from Form 540 2EZ, line 13.
  5. Investment Income. Add line 1, line 2, line 3 and line 4. Enter the amount here.
  6. Is the amount on line 5 more than $3,882?
    Yes   Stop here, you cannot take the credit.
    No   Enter the amount from line 5 on form FTB 3514, line 4. Go to Step 3.

Step 3  Qualifying Child

Qualifying Child Definition

A qualifying child for the EITC is a child who meets the following conditions:

  • Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
  • Is under age 19 at the end of 2020 and younger than you (or your spouse/RDP, if filing jointly), or under age 24 at the end of 2020, a student, and younger than you (or your spouse/RDP, if filing jointly), or any age and permanently and totally disabled.
  • Is not filing a joint return for 2020 or is filing a joint return for 2020 only to claim a refund of withheld income tax or estimated tax paid. Get federal Publication 596, Earned Income Credit, for examples.
  • Lived with you in California for more than half of 2020. If the child did not live with you for the required time, see exceptions in the instructions for line 11.

    Note: If the child was married or meets the conditions to be a qualifying child of another person (other than your spouse/RDP if filing a joint return), special rules apply. Get federal Publication 596 for more information.

Qualifying Child Questionnaire

  1. Do you have at least one child who meets the conditions to be your qualifying child?
    Yes Continue.
    No Go to Step 4.
  2. Are you filing a joint return for 2020?
    Yes Complete form FTB 3514, Part III, line 5 through line 12. Go to Step 5.
    No Continue.
  3. Could you be a qualifying child of another person for 2020? (Answer “No” if the other person is not required to file, and is not filing, a 2020 tax return or is filing a 2020 return only to claim a refund of withheld income tax or estimated tax paid. Get federal Publication 596 for examples.)
    Yes Stop here, you cannot take the credit.
    No Complete form FTB 3514, Part III, line 5 through line 12. Go to Step 5.

Note: If your qualifying child is younger than six years old as of the last day of the taxable year, you must list that child information under Child 1, Child 2 or Child 3 column. Do not include any child younger than six years old as an attachment to the form FTB 3514. See Step 8 and Step 9 in the instructions to see if you qualify for the Young Child Tax Credit.

Line 7 – SSN or ITIN

The child must have a valid SSN or ITIN, as defined below, unless the child was born and died in 2020. If your child was born alive and died in 2020 and did not have an SSN, enter “Died” on this line and attach a copy of the child’s birth certificate, death certificate, or hospital medical records or include it according to your software's instructions.

Valid SSN. A valid SSN is a number issued by the Social Security Administration without regard to whether it was issued for employment or issued solely for the purpose of receiving federally funded benefits.

Valid ITIN. A valid ITIN is a federal tax processing number issued by the Internal Revenue Service that is not expired or revoked. For taxable years beginning on or after January 1, 2020, a valid federal ITIN can be used to claim the EITC and YCTC. If an ITIN is used, eligible individuals should provide the documents listed below upon request by FTB:

  • Identifying documents acceptable for purposes of obtaining a California driver’s license as authorized by the Vehicle code and related regulations for purposes of establishing documents acceptable to prove identity.
  • Identifying documents used to report earned income for the taxable year.

Additionally, upon receiving a valid SSN, the individual should notify the FTB in the time and manner prescribed by the FTB. For more information, go to ftb.ca.gov and search for eitc.

An Adoption Taxpayer Identification Number (ATIN) cannot be used to claim EITC. If you or your child has an ATIN and later gets a valid SSN, or a valid federal ITIN you may be able to file an amended return. Use Form 540, 540 2EZ, or 540NR to amend your original or previously filed tax return with Schedule X, California Explanation of Amended Return Changes, attached to the amended return.

If you did not have an SSN or federal ITIN by the due date of your 2020 return (including extensions), you cannot claim the EITC (or YCTC)on either your original or an amended 2020 return, even if you later get an SSN or federal ITIN. Also, if a child did not have an SSN or federal ITIN by the due date of your return (including extensions), you cannot count that child as a qualifying child in figuring the EITC on either your original or an amended 2020 return, even if that child later gets an SSN or federal ITIN.

Line 9a – Student

A student is a child who during any part of 5 calendar months of 2020 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training cours e, correspondence school, or school offering courses only through the Internet.

Line 9b – Permanently and totally disabled

A person is permanently and totally disabled if, at any time in 2020, the person could not engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition (a) has lasted or can be expected to last continuously for at least a year, or (b) can be expected to lead to death.

Line 10 – Child's relationship to you

For additional information see qualifying child definition.

Line 11 – Number of days child lived with you

Enter the number of days the child lived with you in California during 2020. To qualify, the child must have the same principal place of residence in California as you for more than half of 2020, defined as 184 days or more. If the child was born or died in 2020 and your home was the child’s home for more than half the time he or she was alive during 2020, enter "366". Do not enter more than 366 days. If the child did not live with you for the required time, temporary absences may count as time lived at home. For more information get federal Publication 596.

Line 12 – Child’s physical address

Enter the physical address where the child resided during 2020. This should be the address of the principal place of residence in California where the child lived with you for more than half of 2020. If the child lived with you in California for more than half of 2020, but moved within California during this period, this should be the address of the principal place of residence that was shared the longest.

Step 4  Filer Without a Qualifying Child

  1. Is the amount on federal Form 1040 or 1040-SR, line 11 less than $30,001?
    Yes Continue.
    No Stop here, you cannot take the credit.
  2. Were you (or your spouse/RDP if filing a joint return) at least age 18 at the end of 2020? (Answer “Yes” if you, or your spouse/RDP if filing a joint return, were born on or before January 1, 2003.) If your spouse/RDP died in 2020 (or if you are preparing a return for someone who died in 2020), get federal Publication 596 for more information before you answer.
    Yes Continue.
    No Stop here, you cannot take the credit.
  3. Was your main home, and your spouse’s/RDP's if filing a joint return, in California for more than half of 2020?
    Yes Continue.
    No Stop here, you cannot take the credit.
  4. Are you filing a joint return for 2020? For more information get federal Publication 596.
    Yes Skip questions e and f; go to Step 5.
    No Continue.
  5. Could you be a qualifying child of another person for 2020? (Answer “No” if the other person is not required to file, and is not filing, a 2020 tax return or is filing a 2020 return only to claim a refund of withheld income tax or estimated tax paid. Get federal Publication 596 for examples.)
    Yes Stop here, you cannot take the credit.
    No Continue.
  6. Can you be claimed as a dependent on someone else’s 2020 tax return?
    Yes Stop here, you cannot take the credit.
    No Go to Step 5.

Step 5  California Earned Income

Complete lines 13 through 19 to figure your California earned income.

Line 13 – Wages, salaries, tips, and other employee compensation, subject to California withholding

Enter the total amount of your California wages from your federal Form(s) W-2, Wage and Tax Statement. This amount appears on Form W-2, box 16.

Note: If you have clergy wages, subtract the self employment tax, if any, that was reported on federal Schedule SE (Form 1040), Self-Employment Tax, and enter the result on form FTB 3514, line 13.

Employees and independent contractors - If the taxpayer’s classification for California and federal purposes is different, enter the earned income as wages on line 13 or as business income on line 18 based on the federal classification of income. For example, a taxpayer may be classified as an independent contractor for federal purposes, but as an employee for California purposes. Based on this example, this taxpayer would enter their income as business income on form FTB 3514, line 18. Use your federal classification for EITC purposes only and for all other purposes such as completing other tax forms, schedules, etc., use your California classification.

Line 14 – IHSS payments

Enter the amount included on line 13, that you received as Medicaid waiver payments, In Home Supportive Services (IHSS) payments, or IHSS supplementary payments that are nontaxable for federal purposes.

Line 15 – Prison inmate wages and/or pension or annuity from a nonqualified deferred compensation plan or a nongovernmental IRC Section 457 plan

Enter the amount included on line 13, that you received for work performed while an inmate in a penal institution.

Enter the amount included on line 13, that you received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental IRC Section 457 plan. This amount may be shown on federal Form W-2, box 11. If you received such an amount and box 11 is blank, contact your employer for the amount received as a pension or annuity.

Line 17 – Nontaxable combat pay

Enter the amount from federal Form W-2, box 12, code Q, if you elect to include your nontaxable military combat pay in earned income for EITC purposes. If you are filing a joint return, both you and/or your spouse/RDP can elect to include your own nontaxable military combat pay for EITC purposes. Each must include all of their nontaxable military combat pay, not just a portion of it. You may elect to include nontaxable military combat pay in earned income for California purposes, whether or not you elect to include it for federal purposes.

Line 18 – Business income or (loss)

If you are self-employed and have net earnings from self-employment, go to Worksheet 3 to figure your business income or loss. Attach a copy of your complete federal return, including any federal Schedule C (Form 1040), Profit or Loss From Business, Schedule F (Form 1040), Profit or Loss From Farming, Schedule SE (Form 1040), and any Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc.

Employees and independent contractors - If the taxpayer’s classification for California and federal purposes is different, enter the earned income as wages on line 13 or as business income on line 18 based on the federal classification of income. For example, a taxpayer may be classified as an independent contractor for federal purposes, but as an employee for California purposes. Based on this example, this taxpayer would enter their income as business income on form FTB 3514, line 18. Use your federal classification for EITC purposes only and for all other purposes such as completing other tax forms, schedules, etc., use your California classification.

Worksheet 3 – Business Income or (Loss)

  1. Business income or (loss). Enter the amount from federal Schedule 1 (Form 1040), line 3.
  2. Farm income or (loss). Enter the amount from federal Schedule 1 (Form 1040), line 6.
  3. Self-employment earnings from partnerships reported on K-1s. Enter the net profit (or loss) from federal Schedule K-1 (Form 1065), box 14, code A.
  4. Deductible part of self-employment tax. Enter the amount from federal Schedule 1 (Form 1040), line 14.
  5. Total business income or (loss). Add line 1, line 2, line 3, and subtract line 4. Enter the amount here and on form FTB 3514, line 18.

Lines 18 a-e Business information

Enter your business information in the spaces provided. If you have multiple businesses, use the information from the schedule with the largest net profit (loss).

Line b – Business address

Enter your business address. Show a street address instead of a box number. Include the suite or room number, if any.

Line c – Business license number

Enter your business license number. A business license number is a reference number from a county, city, or state that allows you to engage in a specific business activity within the designated area. If you do not have a business license number, leave line c blank.

Line d – SEIN

Enter your state employer identification number (SEIN) issued by the California Employment Development Department. If you do not have a SEIN, leave line d blank.

Line e – Business code

Use the six-digit code from federal Schedule C or Schedule F, box B.

After completing Step 5, line 18e go to Step 6.

Step 6  How to Figure the CA EITC

Complete the California Earned Income Tax Credit Worksheet below. If you file Form 540 or 540 2EZ, after completing Step 6, skip Step 7 and go to Step 8. If you file a Form 540NR, after completing Step 6, go to Step 7.

California Earned Income Tax Credit Worksheet

Part I – All Filers
  1. Enter your California earned income from form FTB 3514, line 19. If the amount is zero or less, stop here.
  2. Look up the amount on line 1 in the EITC Table to find the credit. Be sure you use the correct
    column for the number of qualifying children you have. Enter the credit here
    If the amount on line 2 is zero, stop here. You cannot take the credit.
  3. Enter the amount from federal Form 1040 or 1040-SR, line 11.
  4. Are the amounts on lines 1 and 3 the same?
    Yes Skip line 5; and enter the amount from line 2 on line 6.
    No Go to line 5.
Part II – Filers who Answered “No” on Line 4
  1. If you have:
  • No qualifying children, is the amount on line 3 less than $3,757?
  • 1 qualifying child, is the amount on line 3 less than $5,642?
  • 2 or more qualifying children, is the amount on line 3 less than $7,920?
    Yes Leave line 5 blank; enter the amount from line 2 on line 6.
    No Look up the amount on line 3 in the EITC Table to find the credit. Be sure you use the correct column for the number of qualifying children you have. Enter the credit here.
    Compare the amounts on line 5 and line 2, enter the smaller amount on line 6.
Part III – Your Earned Income Tax Credit
  1. This is your California earned income tax credit.
    Enter this amount on form FTB 3514, line 20.

Step 7  How to Figure the Nonresident or Part-Year Resident EITC

If you file Form 540 or 540 2EZ, skip Step 7 and go to Step 8.

Line 21 –CA Exemption Credit Percentage

If you file a Form 540NR, enter your CA Exemption Credit Percentage from Form 540NR, line 38 on form FTB 3514, line 21. However, if your total taxable income was less than zero and you entered $0 on Form 540NR, line 19, complete Worksheet 4 below to compute the correct CA Exemption Credit Percentage to enter on form FTB 3514, line 21.

Worksheet 4 – CA Exemption Credit Percentage

Complete this worksheet only if you are a nonresident or part-year resident with negative total taxable income and you entered zero on Form 540NR, line 19.

Part I - Total Taxable Income

  1. Enter the amount from Form 540NR, line 17. If a negative amount, enter as negative.
  2. Enter the amount from Form 540NR, line 18.
  3. Total Taxable Income. Subtract line 2 from line 1. Enter the negative result here.

Part II - California Taxable Income

  1. Enter the amount from Schedule CA (540NR), Part IV, line 1. If a negative amount, enter as negative.
  2. Enter the amount from Schedule CA (540NR), Part IV, line 4.
  3. California Taxable Income. Subtract line 5 from line 4. If a negative amount, enter as negative.

Part III - CA Exemption Credit Percentage

  1. Subtract line 6 from line 3. If a negative amount, enter as negative.
  2. Enter the amount from line 3 as a positive amount.
  3. Divide line 7 by line 8. Enter amount as a decimal.
  4. CA Exemption Credit Percentage. Subtract line 9 from 1.000. If more than 1, enter 1.000. If less than zero, enter 0. Enter the result as a decimal here and on form FTB 3514, line 21 or line 29.

Line 22 – Nonresident or Part-Year Resident EITC

Multiply line 20 by line 21 and enter the result on form FTB 3514, line 22. This amount should also be entered on Form 540NR, line 85.

Step 8  Qualifications for Young Child Tax Credit (YCTC)

To qualify for the YCTC, you must meet all of the following:

  • You have been allowed the CA EITC on this form.
  • You have at least one qualifying child for the CA EITC.
  • Your qualifying child is younger than six years old as of the last day of the taxable year.

Caution: If you do not meet all of the above requirements, you cannot take this credit.

If you meet all of the above requirements, complete Part VII, Young Child Tax Credit. If you are a nonresident or part-year resident, also complete Part VIII, Nonresident or Part-Year Resident Young Child Tax Credit.

For taxable years beginning on or after January 1, 2020, California expanded YCTC eligibility to a qualifying child who is younger than 6 years old as of the last day of the taxable year, who has a valid federal ITIN. The child must be a qualifying child of an eligible individual, the eligible individual’s spouse (if married), who have a federal ITIN.

Note: If your qualifying child is younger than six years old as of the last day of the taxable year, you must list that child information under Part III, Qualifying Child Information, Child 1, Child 2 or Child 3 column. Do not include any child younger than six years old as an attachment to the form FTB 3514.

Line 23 – California Earned Income

CA earned income for purposes of the YCTC is the same as for the CA EITC. Enter the amount from form FTB 3514, line 19.

Line 25 - Excess Earned Income over threshold

Subtract the $25,000 threshold amount from your CA earned income entered on line 23 and enter the excess amount on line 25.

Line 26 and Line 27

For every $100 over the threshold amount, your credit is reduced by $20.

Line 28

This is the amount of your allowable YCTC to claim on your tax return. This amount should also be entered on Form 540, line 76; or Form 540 2EZ, line 24. If you file Form 540 or 540 2EZ, stop here, do not go to Step 9.

Step 9  Nonresident or Part-Year Resident Young Child Tax Credit

Line 29

If you file a Form 540NR, enter your CA Exemption Credit Percentage from Form 540NR, line 38 on form FTB 3514, line 29. However, if you completed Worksheet 4, enter the CA Exemption Credit Percentage from Worksheet 4, line 10 on form FTB 3514, line 29.

Line 30

Multiply line 28 by line 29 and enter the result on form FTB 3514, line 30. This amount should also be entered on Form 540NR, line 86.

2020 Earned Income Tax Credit Table

Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.

  1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your California Earned Income Tax Credit Worksheet.
  2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned Income Tax Credit Worksheet.
If the amount you are looking up
from the worksheet is …
And your number of qualifying children is
At least But Not Over 0 1 2 3
Your credit is …
1 50 2 7 9 10
51 100 5 22 26 29
101 150 8 36 43 48
151 200 11 51 60 67
201 250 15 65 77 86
251 300 18 80 94 105
301 350 21 94 111 125
351 400 24 109 128 144
401 450 28 123 145 163
451 500 31 137 162 182
501 550 34 152 179 201
551 600 37 166 196 220
601 650 41 181 213 239
651 700 44 195 230 258
701 750 47 210 247 278
751 800 50 224 264 297
801 850 54 239 281 316
851 900 57 253 298 335
901 950 60 267 315 354
951 1000 63 282 332 373
1001 1050 67 296 349 392
1051 1100 70 311 366 411
086 1150 73 325 383 431
1151 1200 76 340 400 450
1201 1250 80 354 417 469
1251 1300 83 369 434 488
1301 1350 86 383 451 507
1351 1400 89 398 468 526
1401 1450 93 412 485 545
1451 1500 96 426 502 564
1501 1550 99 441 519 584
1551 1600 102 455 536 603
1601 1650 106 470 553 622
1651 1700 109 484 570 641
1701 1750 112 499 587 660
1751 1800 115 513 604 679
1801 1850 119 528 621 698
1851 1900 122 542 638 717
1901 1950 125 556 655 737
1951 2000 128 571 672 756
2001 2050 132 585 689 775
2051 2100 135 600 706 794
2101 2150 138 614 723 813
2151 2200 141 629 740 832
2201 2250 145 643 757 851
2251 2300 148 658 774 870
2301 2350 151 672 791 890
2351 2400 154 687 808 909
2401 2450 158 701 825 928
2451 2500 161 715 842 947
2501 2550 164 730 859 966
2551 2600 167 744 876 985
2601 2650 171 759 893 1004
2651 2700 174 773 910 1023
2701 2750 177 788 927 1043
2751 2800 180 802 944 1062
2801 2850 184 817 961 1081
2851 2900 187 831 978 1100
2901 2950 190 845 995 1119
2951 3000 193 860 1012 1138
3001 3050 197 874 1029 1157
3051 3100 200 889 1046 1176
3101 3150 203 903 1063 1196
3151 3200 206 918 1080 1215
3201 3250 210 932 1097 1234
3251 3300 213 947 1114 1253
3301 3350 216 961 1131 1272
3351 3400 219 976 1148 1291
3401 3450 223 990 1165 1310
3451 3500 226 1004 1182 1329
3501 3550 229 1019 1199 1349
3551 3600 232 1033 1216 1368
3601 3650 236 1048 1233 1387
3651 3700 239 1062 1250 1406
3701 3750 242 1077 1267 1425
3751 3800 243 1091 1284 1444
3801 3850 240 1106 1301 1463
3851 3900 237 1120 1318 1482
3901 3950 233 1134 1335 1502
3951 4000 230 1149 1352 1521
4001 4050 227 1163 1369 1540
4051 4100 224 1178 1386 1559
4101 4150 220 1192 1403 1578
4151 4200 217 1207 1420 1597
4201 4250 214 1221 1437 1616
4251 4300 211 1236 1454 1635
4301 4350 207 1250 1471 1655
4351 4400 204 1265 1488 1674
4401 4450 203 1279 1505 1693
4451 4500 202 1293 1522 1712
4501 4550 202 1308 1539 1731
4551 4600 201 1322 1556 1750
4601 4650 201 1337 1573 1769
4651 4700 201 1351 1590 1788
4701 4750 200 1366 1607 1808
4751 4800 200 1380 1624 1827
4801 4850 199 1395 1641 1846
4851 4900 199 1409 1658 1865
4901 4950 199 1423 1675 1884
4951 5000 198 1438 1692 1903
5001 5050 198 1452 1709 1922
5051 5100 197 1467 1726 1941
5101 5150 197 1481 1743 1961
5151 5200 197 1496 1760 1980
5201 5250 196 1510 1777 1999
5251 5300 196 1525 1794 2018
5301 5350 195 1539 1811 2037
5351 5400 195 1554 1828 2056
5401 5450 195 1568 1845 2075
5451 5500 194 1582 1862 2094
5501 5550 194 1597 1879 2114
5551 5600 194 1611 1896 2133
5601 5650 193 1626 1913 2152
5651 5700 193 1621 1930 2171
5701 5750 192 1606 1947 2190
5751 5800 192 1592 1964 2209
5801 5850 192 1578 1981 2228
5851 5900 191 1563 1998 2247
5901 5950 191 1549 2015 2267
5951 6000 190 1534 2032 2283
6001 6050 190 1520 2049 2305
6051 6100 190 1505 2066 2324
6101 6150 189 1491 2083 2343
6151 6200 189 1476 2100 2362
6201 6250 188 1462 2117 2381
6251 6300 188 1447 2134 2400
6301 6350 188 1433 2151 2420
6351 6400 187 1419 2168 2439
6401 6450 187 1404 2185 2458
6451 6500 186 1390 2202 2477
6501 6550 186 1375 2219 2496
6551 6600 186 1361 2236 2515
6601 6650 185 1346 2253 2534
6651 6700 185 1332 2270 2553
6701 6750 184 1317 2287 2573
6751 6800 184 1303 2304 2592
6801 6850 184 1289 2321 2611
6851 6900 183 1274 2338 2630
6901 6950 183 1260 2355 2649
6951 7000 182 1245 2372 2668
7001 7050 182 1231 2389 2687
7051 7100 182 1216 2406 2706
7101 7150 181 1202 2423 2726
7151 7200 181 1187 2440 2745
7201 7250 180 1173 2457 2764
7251 7300 180 1158 2474 2783
7301 7350 180 1144 2491 2802
7351 7400 179 1130 2508 2821
7401 7450 179 1115 2525 2840
7451 7500 178 1101 2542 2859
7501 7550 178 1086 2559 2879
7551 7600 178 1072 2576 2898
7601 7650 177 1057 2593 2917
7651 7700 177 1043 2610 2936
7701 7750 177 1028 2627 2955
7751 7800 176 1014 2644 2974
7801 7850 176 1000 2661 2993
7851 7900 175 985 2678 3012
7901 7950 175 971 2691 3027
7951 8000 175 956 2674 3008
8001 8050 174 942 2657 2989
8051 8100 174 927 2640 2970
8101 8150 173 913 2623 2951
8151 8200 173 898 2606 2932
8201 8250 173 884 2589 2913
8251 8300 172 869 2572 2893
8301 8350 172 855 2555 2874
8351 8400 171 841 2538 2855
8401 8450 171 826 2521 2836
8451 8500 171 812 2504 2817
8501 8550 170 797 2487 2798
8551 8600 170 783 2470 2779
8601 8650 169 768 2453 2760
8651 8700 169 754 2436 2740
8701 8750 169 739 2419 2721
8751 8800 168 725 2402 2702
8801 8850 168 711 2385 2683
8851 8900 167 696 2368 2664
8901 8950 167 682 2351 2645
8951 9000 167 667 2334 2626
9001 9050 166 653 2317 2607
9051 9100 166 638 2300 2587
9101 9150 165 624 2283 2568
9151 9200 165 609 2266 2549
9201 9250 165 595 2249 2530
9251 9300 164 580 2232 2511
9301 9350 164 566 2215 2492
9351 9400 163 552 2198 2473
9401 9450 163 537 2181 2454
9451 9500 163 523 2164 2434
9501 9550 162 511 2147 2415
9551 9600 162 510 2130 2396
9601 9650 162 509 2113 2377
9651 9700 161 508 2096 2358
9701 9750 161 506 2079 2339
9751 9800 160 505 2062 2320
9801 9850 160 504 2045 2301
9851 9900 160 503 2028 2281
9901 9950 159 501 2011 2262
9951 10000 159 500 1994 2243
10001 10050 158 499 1977 2224
10051 10100 158 498 1960 2205
10101 10150 158 496 1943 2186
10151 10200 157 495 1926 2167
10201 10250 157 494 1909 2148
10251 10300 156 493 1892 2128
10301 10350 156 491 1875 2109
10351 10400 156 490 1858 2090
10401 10450 155 489 1841 2071
10451 10500 155 488 1824 2052
10501 10550 154 486 1807 2033
10551 10600 154 485 1790 2014
10601 10650 154 484 1773 1995
10651 10700 153 483 1756 1975
10701 10750 153 481 1739 1956
10751 10800 152 480 1722 1937
10801 10850 152 479 1705 1918
10851 10900 152 478 1688 1899
10901 10950 151 476 1671 1880
10951 11000 151 475 1654 1861
11001 11050 150 474 1637 1842
11051 11100 150 473 1620 1822
11101 11150 150 471 1603 1803
11151 11200 149 470 1586 1784
11201 11250 149 469 1569 1765
11251 11300 148 468 1552 1746
11301 11350 148 466 1535 1727
11351 11400 148 465 1518 1708
11401 11450 147 464 1501 1689
11451 11500 147 463 1484 1669
11501 11550 146 461 1467 1650
11551 11600 146 460 1450 1631
11601 11650 146 459 1433 1612
11651 11700 145 458 1416 1593
11701 11750 145 456 1399 1574
11751 11800 145 455 1382 1555
11801 11850 144 454 1365 1536
11851 11900 144 453 1348 1516
11901 11950 143 451 1331 1497
11951 12000 143 450 1314 1478
12001 12050 143 449 1297 1459
12051 12100 142 448 1280 1440
12101 12150 142 446 1263 1421
12151 12200 141 445 1246 1402
12201 12250 141 444 1229 1383
12251 12300 141 443 1212 1363
12301 12350 140 441 1195 1344
12351 12400 140 440 1178 1325
12401 12450 139 439 1161 1306
12451 12500 139 438 1144 1287
12501 12550 139 436 1127 1268
12551 12600 138 435 1110 1249
12601 12650 138 434 1093 1230
12651 12700 137 433 1076 1210
12701 12750 137 431 1059 1191
12751 12800 137 430 1042 1172
12801 12850 136 429 1025 1153
12851 12900 136 428 1008 1134
12901 12950 135 426 991 1115
12951 13000 135 425 974 1096
13001 13050 135 454 957 1077
13051 13100 134 423 940 1057
13101 13150 134 421 923 1038
13151 13200 133 420 906 1019
13201 13250 133 419 889 1000
13251 13300 133 418 872 981
13301 13350 132 416 855 962
13351 13400 132 415 838 943
13401 13450 131 414 821 924
13451 13500 131 413 804 904
13501 13550 131 411 787 885
13551 13600 130 410 770 866
13601 13650 130 409 753 847
13651 13700 129 408 736 828
13701 13750 129 406 719 809
13751 13800 129 405 702 790
13801 13850 128 404 685 771
13851 13900 128 403 668 751
13901 13950 128 401 651 732
13951 14000 127 400 634 713
14001 14050 127 399 617 694
14051 14100 126 398 600 675
14101 14150 126 397 583 656
14151 14200 126 395 566 637
14201 14250 125 394 549 618
14251 14300 125 393 532 598
14301 14350 124 392 515 579
14351 14400 124 390 510 560
14401 14450 124 389 509 541
14451 14500 123 388 507 522
14501 14550 123 387 506 511
14551 14600 122 385 504 509
14601 14650 122 384 502 507
14651 14700 122 383 501 506
14701 14750 121 382 499 504
14751 14800 121 380 497 503
14801 14850 120 379 496 501
14851 14900 120 378 494 499
14901 14950 120 377 492 498
14951 15000 119 375 491 496
15001 15050 119 374 489 494
15051 15100 118 373 488 493
15101 15150 118 372 486 491
15151 15200 118 370 484 489
15201 15250 117 369 483 488
15251 15300 117 368 481 486
15301 15350 116 367 479 484
15351 15400 116 365 478 483
15401 15450 116 364 476 481
15451 15500 115 363 474 479
15501 15550 115 362 473 478
15551 15600 114 360 471 476
15601 15650 114 359 470 474
15651 15700 114 358 468 473
15701 15750 113 357 466 471
15751 15800 113 355 465 469
15801 15850 112 354 463 468
15851 15900 112 353 461 466
15901 15950 112 352 460 464
15951 16000 111 350 458 463
16001 16050 111 349 456 461
16051 16100 111 348 455 460
16101 16150 110 347 453 458
16151 16200 110 345 452 456
16201 16250 109 344 450 455
16251 16300 109 343 448 453
16301 16350 109 342 447 451
16351 16400 108 340 445 450
16401 16450 108 339 443 448
16451 16500 107 338 442 446
16501 16550 107 337 440 445
16551 16600 107 335 438 443
16601 16650 106 334 437 441
16651 16700 106 333 435 440
16701 16750 105 332 434 438
16751 16800 105 330 432 436
16801 16850 105 329 430 435
16851 16900 104 328 429 433
16901 16950 104 327 427 431
16951 17000 103 325 425 430
17001 17050 103 324 424 428
17051 17100 103 323 422 426
17101 17150 102 322 420 425
17151 17200 102 320 419 423
17201 17250 101 319 417 422
17251 17300 101 318 416 420
17301 17350 101 317 414 418
17351 17400 100 315 412 417
17401 17450 100 314 411 415
17451 17500 99 313 409 413
17501 17550 99 312 407 412
17551 17600 99 310 406 410
17601 17650 98 309 404 408
17651 17700 98 308 402 407
17701 17750 97 307 401 405
17751 17800 97 305 399 403
17801 17850 97 304 398 402
17851 17900 96 303 396 400
17901 17950 96 302 394 398
17951 18000 95 300 393 397
18001 18050 95 299 391 395
18051 18100 95 298 389 393
18101 18150 94 297 388 392
18151 18200 94 295 386 390
18201 18250 94 294 384 388
18251 18300 93 293 383 387
18301 18350 93 292 381 385
18351 18400 92 290 380 383
18401 18450 92 289 378 382
18451 18500 92 288 376 380
18501 18550 91 287 375 379
18551 18600 91 285 373 377
18601 18650 90 284 371 375
18651 18700 90 283 370 374
18701 18750 90 282 368 372
18751 18800 89 280 366 370
18801 18850 89 279 365 369
18851 18900 88 278 363 367
18901 18950 88 277 362 365
18951 19000 88 275 360 364
19001 19050 87 274 358 362
19051 19100 87 273 357 360
19101 19150 86 272 355 359
19151 19200 86 270 353 357
19201 19250 86 269 352 355
19251 19300 85 268 350 354
19301 19350 85 267 348 352
19351 19400 84 265 347 350
19401 19450 84 264 345 349
19451 19500 84 263 344 347
19501 19550 83 262 342 345
19551 19600 83 260 340 344
19601 19650 82 259 339 342
19651 19700 82 258 337 340
19701 19750 82 257 335 339
19751 19800 81 255 334 337
19801 19850 81 254 332 336
19851 19900 80 253 330 334
19901 19950 80 252 329 332
19951 20000 80 250 327 331
20001 20050 79 249 326 329
20051 20100 79 248 324 327
20101 20150 79 247 322 326
20151 20200 78 245 321 324
20201 20250 78 244 319 322
20251 20300 77 243 317 321
20301 20350 77 242 316 319
20351 20400 77 240 314 317
20401 20450 76 239 312 316
20451 20500 76 238 311 314
20501 20550 75 237 309 312
20551 20600 75 235 308 311
20601 20650 75 234 306 309
20651 20700 74 233 304 307
20701 20750 74 232 303 306
20751 20800 73 230 301 304
20801 20850 73 229 299 302
20851 20900 73 228 298 301
20901 20950 72 227 296 299
20951 21000 72 225 294 298
21001 21050 71 224 293 296
21051 21100 71 223 291 294
21101 21150 71 222 290 293
21151 21200 70 220 288 291
21201 21250 70 219 286 289
21251 21300 69 218 285 288
21301 21350 69 217 283 286
21351 21400 69 215 281 284
21401 21450 68 214 280 283
21451 21500 68 213 278 281
21501 21550 67 212 276 279
21551 21600 67 210 275 278
21601 21650 67 209 273 276
21651 21700 66 208 272 274
21701 21750 66 207 270 273
21751 21800 65 205 268 271
21801 21850 65 204 267 269
21851 21900 65 203 265 268
21901 21950 64 202 263 266
21951 22000 64 200 262 264
22001 22050 63 199 260 263
22051 22100 63 198 258 261
22101 22150 63 197 257 259
22151 22200 62 195 255 258
22201 22250 62 194 254 256
22251 22300 62 193 252 255
22301 22350 61 192 250 253
22351 22400 61 190 249 251
22401 22450 60 189 247 250
22451 22500 60 188 245 248
22501 22550 60 187 244 246
22551 22600 59 185 242 245
22601 22650 59 184 240 243
22651 22700 58 183 239 241
22701 22750 58 182 237 240
22751 22800 58 180 236 238
22801 22850 57 179 234 236
22851 22900 57 178 232 235
22901 22950 56 177 231 233
22951 23000 56 175 229 231
23001 23050 56 174 227 230
23051 23100 55 173 226 228
23101 23150 55 172 224 226
23151 23200 54 170 222 225
23201 23250 54 169 221 223
23251 23300 54 168 219 221
23301 23350 53 167 218 220
23351 23400 53 165 216 218
23401 23450 52 164 214 217
23451 23500 52 163 213 215
23501 23550 52 162 211 213
23551 23600 51 160 209 212
23601 23650 51 159 208 210
23651 23700 50 158 206 208
23701 23750 50 157 204 207
23751 23800 50 155 203 205
23801 23850 49 154 201 203
23851 23900 49 153 200 202
23901 23950 48 152 198 200
23951 24000 48 150 196 198
24001 24050 48 149 195 197
24051 24100 47 148 193 195
24101 24150 47 147 191 193
24151 24200 46 145 190 192
24201 24250 46 144 188 190
24251 24300 46 143 186 188
24301 24350 45 142 185 187
24351 24400 45 140 183 185
24401 24450 45 139 182 183
24451 24500 44 138 180 182
24501 24550 44 137 178 180
24551 24600 43 135 177 178
24601 24650 43 134 175 177
24651 24700 43 133 173 175
24701 24750 42 132 172 174
24751 24800 42 130 170 172
24801 24850 41 129 168 170
24851 24900 41 128 167 169
24901 24950 41 127 165 167
24951 25000 40 125 164 165
25001 25050 40 124 162 164
25051 25100 39 123 160 162
25101 25150 39 122 159 160
25151 25200 39 120 157 159
25201 25250 38 119 155 157
25251 25300 38 118 154 155
25301 25350 37 117 152 154
25351 25400 37 115 150 152
25401 25450 37 114 149 150
25451 25500 36 113 147 149
25501 25550 36 112 146 147
25551 25600 35 110 144 145
25601 25650 35 109 142 144
25651 25700 35 108 141 142
25701 25750 34 107 139 140
25751 25800 34 105 137 139
25801 25850 33 104 136 137
25851 25900 33 103 134 135
25901 25950 33 102 132 134
25951 26000 32 100 131 132
26001 26050 32 99 129 131
26051 26100 31 98 128 129
26101 26150 31 97 126 127
26151 26200 31 95 124 126
26201 26250 30 94 123 124
26251 26300 30 93 121 122
26301 26350 29 92 119 121
26351 26400 29 90 118 119
26401 26450 29 89 116 117
26451 26500 28 88 114 116
26501 26550 28 87 113 114
26551 26600 28 85 111 112
26601 26650 27 84 110 111
26651 26700 27 83 108 109
26701 26750 26 82 106 107
26751 26800 26 80 105 106
26801 26850 26 79 103 104
26851 26900 25 78 101 102
26901 26950 25 77 100 101
26951 27000 24 75 98 99
27001 27050 24 74 96 97
27051 27100 24 73 95 96
27101 27150 23 72 93 94
27151 27200 23 70 92 93
27201 27250 22 69 90 91
27251 27300 22 68 88 89
27301 27350 22 67 87 88
27351 27400 21 65 85 86
27401 27450 21 64 86 84
27451 27500 20 63 82 83
27501 27550 20 62 80 81
27551 27600 20 60 78 79
27601 27650 19 59 77 78
27651 27700 19 58 75 76
27701 27750 18 57 74 74
27751 27800 18 55 72 73
27801 27850 18 54 70 71
27851 27900 17 53 69 69
27901 27950 17 52 67 68
27951 28000 16 50 65 66
28001 28050 16 49 64 64
28051 28100 16 48 62 63
28101 28150 15 47 60 61
28151 28200 15 45 59 59
28201 28250 14 44 57 58
28251 28300 14 43 56 56
28301 28350 14 42 54 54
28351 28400 13 40 52 53
28401 28450 13 39 51 51
28451 28500 12 38 49 50
28501 28550 12 37 47 48
28551 28600 12 35 46 46
28601 28650 11 34 44 45
28651 28700 11 33 42 43
28701 28750 11 32 41 41
28751 28800 10 30 39 40
28801 28850 10 29 38 38
28851 28900 9 28 36 36
28901 28950 9 27 34 35
28951 29000 9 25 33 33
29001 29050 8 24 31 31
29051 29100 8 23 29 30
29101 29150 7 22 28 28
29151 29200 7 20 26 26
29201 29250 7 19 24 25
29251 29300 6 18 23 23
29301 29350 6 17 21 21
29351 29400 5 15 20 20
29401 29450 5 14 18 18
29451 29500 5 13 16 16
29501 29550 4 12 15 15
29551 29600 4 10 13 13
29601 29650 3 9 11 11
29651 29700 3 8 10 10
29701 29750 3 7 8 8
29751 29800 2 5 6 7
29801 29850 2 4 5 5
29851 29900 1 3 3 3
29901 29950 1 2 2 2
29951 30000 1 1 1 1