Overview
The Young Child Tax Credit (YCTC) provides up to $1,117 per eligible tax return for tax year 2023. YCTC may provide you with cash back or reduce any tax you owe. California families qualify with earned income of $30,931 or less. You also must have a qualifying child under 6 years old at the end of the tax year and qualify for CalEITC – with one exception.
For tax year 2022 forward, no earned income is required and you may have a net loss of as much as $33,497. However, you must otherwise meet the CalEITC and YCTC requirements. Note that taxpayers without at least $1 of earned income would not qualify for CalEITC.
Prior tax years
YCTC is also available for tax years 2019, 2020, and 2021. Eligible taxpayers would need earned income of $1 to $30,000. Those with zero earned income or less would not qualify for YCTC.
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 includes all current tax year losses – not just the portion of losses that can be utilized to reduce taxable income. Those with net losses could include gig workers and other self-employed individuals, as well as those with investment, rental, or other losses.
An example: A taxpayer’s only capital transaction during the tax year is selling stock in a tech company for a $50,000 loss. The taxpayer might only be able to utilize $3,000 to take against the taxpayer’s taxable income. In calculating the total net loss for purposes of YCTC’s net loss limitation, the taxpayer would include the entire $50,000 loss, not only the $3,000 that could be utilized on a tax return.
For tax year 2023, you may qualify for YCTC with total earned income of zero dollars or less provided all the following apply:
- Your total wages, salaries, tips, and other employee compensation (whether subject to California withholding or not), if any, do not exceed $33,497.
- Your total net loss does not exceed $33,497.
- You otherwise meet the CalEITC and YCTC requirements.
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.
You must claim YCTC on the 2023 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.
Download, complete, and include with your California tax return:
Prior tax year credit forms:
FAQs
Overview. The Young Child Tax Credit (YCTC) provides up to $1,117 per eligible tax return for tax year 2023. YCTC may provide you with cash back or reduce any tax you owe. California families qualify with earned income of $30,931 or less.
What is CA FTB Young Child Tax Credit? ›
Young Child Tax Credit
You may qualify for up to $1,117 cash back if you had a child under the age of 6 at the end of the tax year. Learn more on our Young Child Tax Credit page.
How much is the Child Tax Credit in California in 2024? ›
The Tax Relief for American Families and Workers Act of 2024–a nonpartisan proposal introduced on January 16, 2024–plans to boost the maximum refundable amount per child in the upcoming tax years. The suggested increments are $1,800 for the 2023 tax year, $1,900 for the 2024 tax year, and $2,000 for the 2025 tax year.
What is the tax credit per child in California? ›
As long as you earned less than $200,000 — or $400,000 if filing a joint return — you could qualify for the full $2,000 per child of the 2023 child tax credit. The refundable part of the credit is worth up to $1,600 for each child. If you earn more, you could be able to claim a partial credit, according to the IRS.
How do I get a 3600 Child Tax Credit? ›
Families must have at least one qualifying child under 6 years old at the end of the tax year, must file a California state tax return, and meet the requirements of the CalEITC. As of tax year 2022 forward, taxpayers do not need to have earned income to be eligible.
Why did I qualify for Child Tax Credit? ›
There are seven qualifying tests to determine eligibility for the Child Tax Credit: age, relationship, support, dependent status, citizenship, length of residency and family income. If you aren't able to claim the Child Tax Credit for a dependent, they might be eligible for the Credit for Other Dependent.
What are the 6 requirements for claiming a child as a dependent? ›
To be a qualifying child, the child must meet five tests: age, relationship, residency, support, and joint return. Failure to meet any of these means the child cannot be considered a dependent. A child who is permanently and totally disabled at any time during the year qualifies as a dependent child, regardless of age.
What is the new CTC update for 2024? ›
Child Tax Credit Limit (as of 2023)
Until the Senate passes the 2024 proposed legislation, the maximum credit is $2,000 per qualifying child, with up to $1,600 being refundable, increasing to $1,700 in 2024. The refundable portion of the CTC phases is 15% for each dollar of income earned above $2,500.
Can you get a Child Tax Credit if you have no income in 2024? ›
Yes, individuals with no income may still qualify for the Child Tax Credit under certain circ*mstances. While the credit is partially refundable, meaning that taxpayers may receive a refund even if they have no tax liability, there are specific eligibility requirements that must be met.
Is California getting a stimulus check in 2024? ›
$528 Stimulus Checks 2024 for Everyone: Know Eligibility & Direct Deposit Dates. It has been confirmed that the states of Michigan and California will get new stimulus checks on May 15,2024.
2024 child tax credit news update
The maximum refundable child tax credit amount was capped at $1,600 per dependent for this filing season. In tax years 2024 and 2025, the refundable amount would grow to $1,900 and $2,000.
How much tax credit do we get per child? ›
The Child Tax Credit is worth up to $2,000 per qualifying child under age 17. Exactly how much you get depends on your income. More specifically, your modified adjusted gross income.
Can I get the child tax credit if I have no income? ›
Do I need to have income to be eligible for the Child Tax Credit? (added January 31, 2022) A10. No. You do not need income to be eligible for the Child Tax Credit if your main home is in the United States for more than half the year.
How to get the full $2,000 child tax credit? ›
How to get the rest of the credit. The only way to get the full amount of any remaining Child Tax Credit for which you are eligible is to file a tax return for 2021. When you are ready to file, you can use childtaxcredit.gov to find free assistance for filing to receive your Child Tax Credit.
How do you claim the 8000 child tax credit? ›
To claim the credit, you'll have to list on your tax return the name, address, and Social Security number or Employer Identification number of the people you pay for dependent care, so be sure to get this information. You must also file IRS Form 2441, Child and Dependent Care Expenses with your tax return.
Is child tax credit $3,000 this year? ›
The maximum credit amount has increased to $3,000 per qualifying child between ages 6 and 17 and $3,600 per qualifying child under age 6. If you're eligible, you could receive part of the credit in 2021 through advance payments of up to: $250 per month for each qualifying child age 6 to 17 at the end of 2021.
Why do you lose Child Tax Credit at age 17? ›
The rationale behind this age cutoff lies in societal norms, as 17 is often considered a turning point in a child's life, typically coinciding with the end of high school and the onset of higher education or employment.
Why don't I qualify for Child Tax Credit 2024? ›
To be eligible for the tax break this year, you and your family must meet these requirements: You have a modified adjusted gross income, or MAGI, of $200,000 or less, or $400,000 or less if you're filing jointly. The child you're claiming the credit for was under the age of 17on Dec. 31, 2023.
Can I get the Child Tax Credit if I have no income? ›
Do I need to have income to be eligible for the Child Tax Credit? (added January 31, 2022) A10. No. You do not need income to be eligible for the Child Tax Credit if your main home is in the United States for more than half the year.
What is the additional Child Tax Credit? ›
The Additional Child Tax Credit allows you to receive up to $1,600 of the $2,000 CTC per child as a refund for 2023 and 2024. To determine whether you're eligible to claim the Additional Child Tax Credit, fill out the Child Tax Credit Worksheet in the Form 1040 instructions.
