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Young Child Tax Credit (CA) (cash back on the California return for families with a child under 6): who qualifies, what you get, how to apply, and what happens next

The Young Child Tax Credit pays up to $1,189 per California tax return (tax year 2025) to CalEITC-eligible families with a child under 6 and earned income of $32,900 or less; families with zero earned income or a loss up to $35,640 can also qualify. It is claimed on form FTB 3514 with the California return, free through CalFile or a VITA site.

What the Young Child Tax Credit is, in one paragraph

The Young Child Tax Credit (YCTC) is cash back on the California tax return for families with a child under 6 and low earned income. The Franchise Tax Board (FTB) pays it with CalEITC, on the same form FTB 3514 (rule:claim_on_return). It is paid per return, not per child (rule:max_credit). Since tax year 2022 a family with zero earned income or a business loss can still qualify (rule:net_loss_exception).

up to $1,189
per eligible tax return, tax year 2025 (FTB, rule:max_credit)

Who may qualify

The exception for zero earned income or a loss, tax year 2025 (rule:net_loss_exception, rule:net_loss_limit):

TestLimit
Total wages, tips and other employee pay, withheld or not$35,640 or less
Total net loss for the year$35,640 or less
Other CalEITC and YCTC requirementsall met

How to apply, and what happens after

There is no application. The credit is claimed on the California return with form FTB 3514, the same form as CalEITC (rule:claim_on_return). CalFile files the state return free with FTB (rule:calfile_free); VITA volunteers prepare returns free (rule:vita_help; see Free tax preparation: VITA / TCE + Free File + CalFile (free ways to prepare and file federal and California returns): who qualifies, what you get, how to apply, and what happens next).

The credit can be claimed for tax years 2021 forward by filing or amending the return (rule:claim_window). It is claimed again each year while a child is under 6 (rule:renewal_each_year).

If FTB changes or denies the credit, the notice gives an appeal date; the appeal goes to the Office of Tax Appeals (rule:appeal_ota, rule:appeal_deadline, rule:ota_contact).

The procedure, stage by stage, as data
JSONThe procedure, stage by stage, as data
11 items
10 keys
"id""stage:discover"
"order"1
"name""Discover"
"what_happens""The person learns that the Young Child Tax Credit exists and is paid through the California tax return, even with income too low to owe tax."
"who_acts""Person / outreach"
"timeline""Any time; the 2025 return is the current year"
"evidence""None"
"failure_mode""Not filing because no tax is owed; the credit is only paid on a filed return"
"model_role""Screen from income, children and filing facts; name every credit the same return can carry"
"automation_class""A"
10 keys
"id""stage:screen_eligibility"
"order"2
"name""Screen eligibility"
"what_happens""Earned income, age, qualifying children, SSN or ITIN, and California residence are checked against the tax-year rules"
"who_acts""Model + person"
"timeline""Minutes"
"evidence""Earned income, dates of birth, ID numbers"
"failure_mode""Assuming an ITIN or self-employment income excludes the person"
"model_role""Apply each rule with its id; state which rules pass and which only FTB decides"
"automation_class""A"
10 keys
"id""stage:gather_documents"
"order"3
"name""Gather documents"
"what_happens""W-2s, 1099s, self-employment records, ID numbers for every person on the return, each child's date of birth"
"who_acts""Person with model checklist"
"timeline""Before filing"
"evidence""W-2, 1099, SSN or ITIN cards"
"failure_mode""A missing ID number or income form stops the return"
"model_role""Build the checklist from facts already known"
"automation_class""A"
10 keys
"id""stage:complete_application"
"order"4
"name""Complete application"
"what_happens""The California return (Form 540 or 540 2EZ) and form FTB 3514 are completed, or tax software asks the same questions"
"who_acts""Person, VITA volunteer or software; model explains"
"timeline""During filing"
"evidence""Return and FTB 3514"
"failure_mode""Credit not claimed because FTB 3514 is left out"
"model_role""Explain each FTB 3514 line in plain words; never fill or file"
"automation_class""B"
10 keys
"id""stage:submit"
"order"5
"name""Submit"
"what_happens""The return is filed by CalFile, other e-file, VITA, or paper mail"
"who_acts""Person"
"timeline""By the return due date for the year; late returns can still claim the credit within the window in rule:claim_window"
"evidence""E-file acceptance or mailing proof"
"failure_mode""No proof of filing kept"
"model_role""Point to the filing route; record the date the person says it was filed"
"automation_class""B"
10 keys
"id""stage:interview_verification"
"order"6
"name""Interview / verification"
"what_happens""FTB may review the return or send a letter asking for proof"
"who_acts""FTB + person"
"timeline""When a letter arrives; the letter states the reply date"
"evidence""The letter and the documents it asks for"
"failure_mode""Ignoring an FTB letter"
"model_role""Read the letter with the person and list what it asks for"
"automation_class""C - FTB review is human"
10 keys
"id""stage:decision"
"order"7
"name""Decision"
"what_happens""FTB processes the return and pays the refund or sends a notice of change"
"who_acts""FTB"
"timeline""FTB processing time; not stated on the fetched pages (UNKNOWN)"
"evidence""Refund or notice"
"failure_mode""A changed refund accepted without reading the notice"
"model_role""Compare the notice to the credit amount the rules give"
"automation_class""A"
10 keys
"id""stage:issuance_use"
"order"8
"name""Issuance / use"
"what_happens""Refund by direct deposit or check, or a lower tax owed"
"who_acts""FTB"
"timeline""After processing"
"evidence""Bank deposit or check"
"failure_mode""Wrong bank details"
"model_role""Explain the refund status tools"
"automation_class""D"
10 keys
"id""stage:renew_recertify"
"order"9
"name""Renew / recertify"
"what_happens""There is no renewal: the credit is claimed again on each year's return"
"who_acts""Person"
"timeline""Every tax year"
"evidence""That year's return"
"failure_mode""Assuming last year's claim carries over"
"model_role""Remind that each year is a new claim"
"automation_class""A"
10 keys
"id""stage:denial_response"
"order"10
"name""Denial response"
"what_happens""Read the FTB notice: what was disallowed and why"
"who_acts""Model + person"
"timeline""At once; the appeal date is on the notice"
"evidence""The notice"
"failure_mode""Treating a missing-document letter as a final denial"
"model_role""Separate a request for documents from a final decision"
"automation_class""A"
10 keys
"id""stage:appeal_fair_hearing"
"order"11
"name""Appeal / fair hearing"
"what_happens""Appeal to the Office of Tax Appeals by the date on the notice"
"who_acts""Person (a representative may act)"
"timeline""By the appeal date on the notice (rule:appeal_deadline)"
"evidence""Notice copy and supporting documents"
"failure_mode""Sending the appeal to FTB instead of the Office of Tax Appeals"
"model_role""Give the Office of Tax Appeals address and the documents the page lists"
"automation_class""B"

The same facts open other programs

A child's date of birth and the household's earned income are asked by:

References (8)
What this article shares with the graph
JSONWhat this article shares with the graph
6 keys
"program_id""B050"
"graph""california-benefits-graph"
"related_program_ids" 8 items
"B049"
"B052"
"B053"
"B051"
"B054"
"B003"
"B058"
"B060"
"related_programs" 8 keys
"B049""California Earned Income Tax Credit (CalEITC)"
"B052""Federal EITC"
"B053""Child Tax Credit + Additional CTC"
"B051""Foster Youth Tax Credit (CA)"
"B054""Free tax preparation: VITA / TCE + Free File + CalFile"
"B003""WIC (Women, Infants & Children)"
"B058""Head Start / Early Head Start"
"B060""Subsidized child care: CalWORKs Stages 1-3 + Alternative Payment (CAPP)"
"triggered_by_events" 1 item
"event:pregnancy_new_baby"
"shares_facts_with" 3 keys
"household.income.annual" 3 items
"B012"
"B049"
"B056"
"household.income.earned_annual" 4 items
"B049"
"B051"
"B052"
"B053"
"household.composition.members[].date_of_birth" 3 items
"B003"
"B053"
"B058"

Official addresses

Related pages
Beside
California Earned Income Tax Credit (CalEITC) (cash back on the California tax return for low-wage workers): who qualifies, what you get, how to apply, and what happens nextFederal EITC (the IRS Earned Income Tax Credit for low- and moderate-wage workers): who qualifies, what you get, how to apply, and what happens nextChild Tax Credit + Additional CTC (the federal tax credit for children under 17): who qualifies, what you get, how to apply, and what happens nextFoster Youth Tax Credit (CA) (cash back on the California return for former foster youth aged 18 to 25): who qualifies, what you get, how to apply, and what happens nextFree tax preparation: VITA / TCE + Free File + CalFile (free ways to prepare and file federal and California returns): who qualifies, what you get, how to apply, and what happens nextWIC (Women, Infants & Children) (California food, nutrition and breastfeeding support for pregnancy and children under 5): who qualifies, what you get, how to apply, and what happens nextHead Start and Early Head Start (free federal early education for children under five from low-income families): who qualifies, what you get, how to apply, and what happens nextSubsidized child care in California (CalWORKs Stages One, Two and Three and Alternative Payment vouchers): who qualifies, what you get, how to apply, and what happens next
References (14)
  1. Young Child Tax Credit — California Franchise Tax Board“The Young Child Tax Credit (YCTC) provides up to $1,189 per eligible tax return for tax year 2025.”
  2. Young Child Tax Credit — California Franchise Tax Board“California families qualify with earned income of $32,900 or less.”
  3. Young Child Tax Credit — California Franchise Tax Board“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.”
  4. Young Child Tax Credit — California Franchise Tax Board“For tax year 2025, you may have a net loss of up to $35,640.”
  5. Young Child Tax Credit — California Franchise Tax Board“Your total wages, salaries, tips, and other employee compensation (whether subject to California withholding or not), if any, do not exceed $35,640.”
  6. Young Child Tax Credit — California Franchise Tax Board“You may claim YCTC for tax years 2021 and forward by filing or amending your state income tax return.”
  7. Young Child Tax Credit — California Franchise Tax Board“Filing your state tax return is required to claim this credit.”
  8. Young Child Tax Credit — California Franchise Tax Board“Earned income is wages, salaries, tips, and other employee compensation that is subject to California withholding, or net income from self-employment.”
  9. Appeal a decision — California Franchise Tax Board“If you don’t agree with a notice of action or a claim for refund denial or if we have not accepted or denied your refund claim within six months, submit an appeal to the Office of Tax Appeals.”
  10. Appeal a decision — California Franchise Tax Board“Submit your appeal by the appeal date on your notice.”
  11. Phone / fax — California Franchise Tax Board“Our contact center services are currently unavailable.”
  12. CalFile — California Franchise Tax Board“Use CalFile to e-file your state tax return directly to the Franchise Tax Board.”
  13. Eligibility and credit information (CalEITC) — California Franchise Tax Board“Tax year 2025 maximum income and credit amounts for CalEITC and related tax credits”
  14. Eligibility and credit information (CalEITC) — California Franchise Tax Board“Also, you may receive free tax help through the Volunteer Income Tax Assistance (VITA) program.”