California does not have a general child tax credit, but it does offer the Young Child Tax Credit, worth up to $1,189 per return for tax year 2025 to families with at least one child under age six. The credit is refundable, so it can produce a cash refund even if you owe no state tax. There’s a catch worth knowing up front: you can only claim the Young Child Tax Credit (YCTC) if you also qualify for the California Earned Income Tax Credit (CalEITC), so the CalEITC rules are where eligibility is actually decided.
Who Qualifies
Qualifying happens in two steps. First you have to meet the CalEITC rules. Then you need a young enough child for the YCTC add-on.
For tax year 2025, the CalEITC requires all of the following:1Franchise Tax Board. Eligibility and Credit Information
- You lived in California for more than half the tax year.
- You had at least $1 of earned income and no more than $32,900. The ceiling is the same regardless of how many children you have.
- You, your spouse or registered domestic partner, and any qualifying children each have a Social Security Number or an ITIN.
- If you have no qualifying children, you are at least 18.
Earned income means wages, salaries, tips, and net self-employment or gig income. Unemployment, Social Security, disability, and investment returns don’t count. A household can have $40,000 in total income and still qualify if only $25,000 of it came from work.
A qualifying child is your son, daughter, stepchild, foster child, or a descendant like a grandchild who lived with you for more than half the year and was under 19 at year-end (under 24 if a full-time student), or permanently disabled at any age.
For the YCTC specifically, you need to meet those CalEITC rules and have at least one qualifying child who was under age six on December 31 of the tax year.2Franchise Tax Board. Young Child Tax Credit YCTC
The YCTC has one carve-out the CalEITC doesn’t. If you’re self-employed or doing gig work and your business ran a net loss, you can still qualify, as long as your total wages don’t exceed $35,640 and your net loss doesn’t exceed $35,640 for tax year 2025.2Franchise Tax Board. Young Child Tax Credit YCTC That’s meaningful for people who had a bad business year but are still raising young kids.
How Much You Can Get
The CalEITC amount depends on your earned income and how many qualifying children you claim. For tax year 2025, the maximums are:1Franchise Tax Board. Eligibility and Credit Information
- No qualifying children: up to $302
- One qualifying child: up to $2,016
- Two qualifying children: up to $3,339
- Three or more qualifying children: up to $3,756
The YCTC adds up to $1,189 on top for tax year 2025.2Franchise Tax Board. Young Child Tax Credit YCTC That amount is per return, not per child, so two kids under six does not double it. A family with two young children at the right income level could receive up to $4,528 from the two credits combined.
Most filers get less than the maximum. The credits ramp up as your earned income rises from zero, peak in a middle range, then phase down as income climbs toward the ceiling. The YCTC starts phasing out once earned income crosses a threshold that is adjusted for inflation each year from a base of $25,000, and it shrinks by $20 for every $100 of earned income above the threshold.3California Legislative Information. California Revenue and Taxation Code 17052.1 The Franchise Tax Board (FTB) publishes an online EITC calculator that gives you a specific estimate for your situation.
One related credit worth flagging: if you were in the California foster care system at age 13 or older and are now between 18 and 25, you may also qualify for the Foster Youth Tax Credit, worth up to $1,189 per eligible person (or up to $2,378 if both spouses or registered domestic partners qualify) and claimed alongside the CalEITC.4Franchise Tax Board. Foster Youth Tax Credit FYTC
How to Claim It
You claim the CalEITC and YCTC by filling out Form FTB 3514 and attaching it to your California return (Form 540, 540 2EZ, or 540NR for part-year residents and nonresidents).5Franchise Tax Board. California Earned Income Tax Credit E-filing software walks through the questions and generates the form for you.
One mistake the FTB sees repeatedly: filers transfer the wrong federal adjusted gross income onto Form 3514. That alone can cause the FTB to recalculate or deny the credit after you file.6Franchise Tax Board. Notice of Tax Return Change Make sure the AGI on your state form matches your federal return exactly.
Refund timing depends on how you file. Electronic returns usually produce a refund within three weeks; paper returns can take up to three months.7Franchise Tax Board. Where’s My Refund E-filing with direct deposit is the faster path.
Free Filing Help
If you qualify for these credits, you likely don’t need to pay for tax preparation. The FTB’s CalFile tool lets you prepare and submit your state return online for free. The federal Volunteer Income Tax Assistance (VITA) program offers free in-person preparation at community sites across California, with volunteers trained specifically on the CalEITC and YCTC. Many commercial tax programs also offer free state filing for simple returns. Paying $100 to $400 to a preparer when your total credit might be $1,500 cuts significantly into what the program is meant to deliver.