How California's CalEITC and Young Child Tax Credit Work - and Whether You Qualify
What is CalEITC and how is it different from the federal earned income tax credit?
CalEITC is California's own Earned Income Tax Credit, administered by the Franchise Tax Board separately from the federal EITC run by the IRS. It has lower income limits than the federal version, is available to filers who use an ITIN (not just Social Security numbers), and the credit amounts differ. You must claim them separately on your federal and state returns.
Can I claim CalEITC if I use an ITIN instead of a Social Security number?
Yes. California allows filers who use an Individual Taxpayer Identification Number to claim CalEITC, which is a significant difference from the federal Earned Income Tax Credit, which requires a Social Security number. You still need to meet California's income and residency requirements. Check ftb.ca.gov for current eligibility rules, since these can change by tax year.
What is the Young Child Tax Credit in California and who qualifies?
The Young Child Tax Credit is a refundable California state credit available to filers who qualify for CalEITC and have at least one child who was under age 6 on December 31 of the tax year. The credit amount is set by the Franchise Tax Board and can change annually. You claim it on FTB Form 3514 along with CalEITC when you file your state return.
Can I still claim CalEITC if I missed the California tax filing deadline?
Generally yes. If you're owed a refund through CalEITC or the Young Child Tax Credit, you can typically file a late California return without a penalty, and California's statute of limitations for claiming a refund is generally four years from the original due date. File as soon as possible and confirm current rules with the Franchise Tax Board at ftb.ca.gov.
Do I need to file a separate form to claim CalEITC and the Young Child Tax Credit in California?
Yes. Both credits are claimed using FTB Form 3514, which is filed alongside your California Form 540 or 540 2EZ. Most tax software will prompt you through the eligibility questions automatically, but it's worth confirming the software is applying the state credit separately from the federal EITC. Form 3514 is also available at ftb.ca.gov for paper filers.
California runs its own version of the federal Earned Income Tax Credit, and it's one of the more substantial tax benefits the state offers to lower-income workers - but a significant portion of eligible Californians leave it unclaimed every year, often because they don't realize the state credit exists separately from the federal one. The CalEITC and its companion benefit, the Young Child Tax Credit, are filed through the Franchise Tax Board and can mean hundreds or even thousands of dollars back at tax time.
Related: How California's Earned Income Tax Credits Work - and How to Claim CalEITC and the Young Child Tax Credit · How California's Earned Income Tax Credit Works — and Whether You Qualify This Year
What CalEITC Is and Who Qualifies
The California Earned Income Tax Credit, known as CalEITC, is a refundable state income tax credit for lower-wage workers and families. "Refundable" means that if the credit exceeds what you owe in state taxes, the FTB will pay you the difference - it's not just a reduction in your tax bill.
Eligibility is based on your earned income and adjusted gross income, your filing status, and the number of qualifying children in your household. California's income thresholds for CalEITC are significantly lower than the federal EITC thresholds - the state credit phases out at a much lower income level, so it targets workers at the lower end of the income scale. The FTB publishes current income limits and credit amounts on its website each tax year; as of the 2025 tax year (returns filed in 2026), income eligibility limits and credit amounts were updated, so check ftb.ca.gov for the figures that apply to your specific situation rather than relying on any general number you may have seen elsewhere.
To qualify, you generally must have earned income from wages, self-employment, or certain other sources - investment income alone doesn't count. You must also be a California resident for at least part of the year and file a California state return. You don't need a Social Security number for yourself to claim CalEITC; California extended eligibility to filers who use an Individual Taxpayer Identification Number (ITIN), which is a meaningful distinction from the federal EITC rules.
The Young Child Tax Credit
If you qualify for CalEITC and have a child under the age of 6 as of the end of the tax year, you may also be eligible for the Young Child Tax Credit. This is an additional refundable credit layered on top of CalEITC - you don't have to choose between them. The credit amount can vary based on how many qualifying children under 6 you have, and the FTB adjusts the figures periodically; the current per-child amount for the tax year you're filing should be confirmed at ftb.ca.gov before you file.
The age cutoff is strict: the child must be under 6 on December 31 of the tax year in question, not just during any part of the year. A child who turned 6 during the year doesn't qualify for that year's credit.
How to Claim These Credits When You File
Both CalEITC and the Young Child Tax Credit are claimed on your California state income tax return using FTB Form 3514. You fill out that form alongside your Form 540 (the standard California resident return) or Form 540 2EZ, depending on which you use. If you file using tax software, the program should walk you through eligibility questions for both credits automatically - but it's worth double-checking that the software is actually applying the state credit, not just the federal one.
If you're filing a paper return, Form 3514 is available on ftb.ca.gov. The FTB also offers CalFile, its free direct online filing system, for eligible filers - income and eligibility limits apply, and those are listed on the FTB's website.
For the 2025 tax year, the standard California filing deadline was April 15, 2026. That deadline has already passed. If you missed it and believe you're owed a refund through CalEITC or the Young Child Tax Credit, you can generally still file a late return and claim a refund - California's statute of limitations for claiming a refund is typically four years from the original due date of the return. You won't face a penalty for filing late if you're owed a refund rather than owing taxes, but you should file as soon as possible. The FTB's website has current guidance on late filing and refund claims.
See also: How to Apply for California's CARE and FERA Utility Discount Programs - and Whether You Qualify · How to Qualify for California's CARE Program and Cut Your Utility Bill by Up to 30%
A Few Things That Trip People Up
The most common mistake is assuming that qualifying for the federal EITC automatically means you qualify for CalEITC in the same amount. The two programs use different income thresholds, different credit tables, and different phase-out ranges. You may qualify for one and not the other, or qualify for both at different amounts.
Self-employment income does count as earned income for CalEITC purposes, but you have to report it accurately on your state return. Filers who underreport self-employment income to avoid taxes can inadvertently disqualify themselves from the credit they'd otherwise be owed - an outcome that tends to work against people it was meant to help.
Finally, if you believe you qualified for CalEITC in a prior tax year and didn't claim it, you may be able to file an amended return. California Form 540X is used for amended state returns, and again, the four-year window generally applies. The FTB's website explains the process.
This is general information, not legal or financial advice. Income limits, credit amounts, and eligibility rules for CalEITC and the Young Child Tax Credit change from tax year to tax year. Always verify current figures, deadlines, and forms with the California Franchise Tax Board at ftb.ca.gov before filing.