California Young Child Tax Credit (YCTC): Who Gets It
A refundable state credit for working families with a child under 6, and for some families with no earnings at all.
California's Young Child Tax Credit (YCTC) is worth up to $1,189 per tax return for tax year 2025. You qualify if you have a qualifying child under 6 at the end of the year and you qualify for the California Earned Income Tax Credit (CalEITC), or would qualify except that your earned income is $0 or less. The full credit goes to families with earned income up to $27,425, and it is refundable, so you get it even if you owe no tax.
Who qualifies
The rules are on form FTB 3514, the same form used for CalEITC. For tax year 2025 you need all of these:
- A qualifying child younger than 6 on December 31. The child must be your CalEITC qualifying child, which generally means a son, daughter, stepchild, foster child, sibling or a descendant of one of them who lived with you in California for more than half the year.
- CalEITC eligibility: earned income and federal adjusted gross income each less than $32,901, and investment income of $4,814 or less.
- A valid SSN or ITIN for you (and your spouse, if filing jointly) and for the child.
Earned income means wages, salaries, tips and other pay subject to California withholding, plus net earnings from self-employment.
How much you get
Unlike CalEITC, the YCTC doesn't grow with income. It starts at the full $1,189 and then phases out:
- If your earned income is $27,425 or less, the credit is $1,189.
- Above $27,425, divide the excess by 100, multiply by $21.71, and subtract the result from $1,189. FTB has you cut each step to cents rather than round.
- Round the result to the nearest dollar. If it lands between $0 and $1, you get $1.
For example, with earned income of $30,000 you are $2,575 over the threshold. That is 25.75 × $21.71 = $559.03, so the credit is $1,189 − $559.03 = $630.
| Earned income | Young Child Tax Credit |
|---|---|
| $10,000 | $1,189 |
| $27,425 | $1,189 |
| $28,500 | $956 |
| $30,000 | $630 |
| $31,500 | $304 |
| $32,500 | $87 |
| $32,900 | $1 |
The credit is per return. A family with two children under 6 still gets one YCTC, although more children can raise the CalEITC itself (up to $3,756 for 2025).
Families with no earnings or a loss
Since tax year 2022, you don't need earned income to get the YCTC. If your earned income is zero or negative, for example because a small business or gig work lost money, you can still get the full $1,189 when:
- your total net loss for the year is $35,640 or less (counting the whole loss, even the part you can't deduct this year),
- your total wages, salaries and tips, including any not subject to California withholding, are $35,640 or less,
- your federal AGI is no more than $32,900, and
- you meet every other CalEITC requirement.
You won't get CalEITC itself in that case, because CalEITC needs at least $1 of earned income.
Part-year residents
If you lived in California for only part of the year, the credit is multiplied by your CA exemption credit percentage from Form 540NR, line 38. Our part-year resident tax calculator works that percentage out.
How to claim it
File a California return (Form 540, 540 2EZ or 540NR) and complete form FTB 3514, including Part VII. Tax software does this when you enter your child's information. You have to file even if your income is below the filing requirement. FTB lets you claim the credit for tax years 2021 and later by filing or amending that year's return.
Run your numbers
Our Young Child Tax Credit Calculator applies the FTB 3514 formula, including the zero-income rules and part-year proration. To see whether you qualify for the related credits, use the CalEITC estimator.
Frequently Asked Questions
How much is the Young Child Tax Credit for 2025?
Up to $1,189 per tax return. The full amount goes to families with earned income of $27,425 or less; above that it shrinks by $21.71 for every $100 and ends just before $32,901.
Do I get the YCTC for each child under 6?
No. It is one credit per return. Two or three young children still get one Young Child Tax Credit, though they can increase your CalEITC.
Can I get the Young Child Tax Credit with no job?
Yes, if your earned income is $0 or less and you otherwise meet the CalEITC rules. Your total net loss and your wages must each be $35,640 or less, and your federal AGI no more than $32,900. This covers, for example, a self-employed parent whose business lost money.
Can I claim the YCTC with an ITIN?
Yes. Since tax year 2020, you and your child can qualify with a valid Individual Taxpayer Identification Number instead of a Social Security number.
Can I claim the YCTC for a past year?
Yes. The Franchise Tax Board says you can claim it for tax years 2021 and later by filing or amending the return for that year. For years before 2022 you also needed at least $1 of earned income.
This article is for general information only and is not tax advice. Figures are for tax year 2025 from the Franchise Tax Board's form FTB 3514. Free help filing is available through VITA sites.