Tax credits & savings / Guide
Young Child Tax Credit: 2025 Rules for Filing in 2026
Claim California YCTC for a child under 6 in 2025. Check the zero-income exception, Form 3514, free filing, and a missing or adjusted refund.
Key figure in this guideUp to $1,189 creditSee the requirements and applicable dates below.
If you had a qualifying child who was under 6 on December 31, 2025, check the Young Child Tax Credit (YCTC) when filing your 2025 California return in 2026. It can be worth up to $1,189 per return. Having no earned income does not automatically rule you out: YCTC has an exception that the California Earned Income Tax Credit (CalEITC) does not.
Start with the child's age and the two income routes below, then complete 2025 Form 3514 and its instructions with your state return. The normal extended filing deadline is October 15, 2026; an extension to file did not extend the April 15 tax-payment deadline. These are 2025 tax-year rules, not the rules for money you earn in 2026 and report in 2027.
Which income route applies to you?
- Positive earned income: you must qualify for CalEITC. For 2025, both California earned income and federal adjusted gross income must be $32,900 or less. Earned income means pay from work, such as wages or qualifying self-employment income. Federal adjusted gross income is the income total after adjustments on your federal return; it can include income beyond your wages.
- Zero or negative earned income: you may qualify for YCTC without receiving CalEITC. You must otherwise meet the CalEITC and YCTC requirements, and neither your total wages, salaries, tips and other employee compensation nor your total net loss may exceed $35,640 for 2025. This is an exception for zero or negative earned income, not a higher income ceiling for every family.
The child's age alone is not enough. The child must also meet the qualifying-child rules, including the relationship and residence tests. You must have lived in California for more than half of 2025 and meet the identification, filing-status, dependency and other applicable CalEITC rules. Valid Social Security numbers or ITINs can be used under the state credit's rules. Form 3514 checks these conditions; use its qualifying-child section rather than assuming that any child you support qualifies.
The zero-income exception: losses are not just business losses
A family with no wages and no earned income can still receive YCTC if it meets the other requirements. It cannot receive CalEITC on zero earned income, because CalEITC requires positive earned income. Claiming YCTC does not mean claiming both credits.
For the exception, total net loss can include business, investment, rental and other current-year losses. The test looks at losses without the limits that may restrict how much you can deduct on a tax return. A large stock loss does not become a small loss for this test merely because only part is deductible. Follow the instructions for Form 3514 lines 23a and 23b, or bring the loss records to a preparer. Do not use only the net business income number.
How much YCTC pays for the 2025 tax year
| Item | 2025 tax year, filed in 2026 |
|---|---|
| Maximum YCTC | $1,189 per eligible return, not per child |
| Child's age | Under 6 on December 31, 2025 |
| Credit starts decreasing | California earned income above $27,425 |
| Refundable? | Yes; an allowed credit can exceed your state income tax |
Two qualifying children under 6 do not double the maximum. The credit decreases as earned income rises and is completely phased out at $32,901. The form calculates your amount, including any adjustment for a part-year resident. Refundable means the allowed credit can produce a refund after your tax is calculated; it does not make $1,189 an automatic payment to every family with a young child.
Claim it on your California return
- Prepare the state return for the correct tax year. File even if you would not otherwise have to file to report income. Gather work-income and loss records, identification numbers, and the child's date of birth and residence information.
- Complete Form 3514. Enter the qualifying child's information and complete the YCTC section. If you have zero or negative earned income, answer the exception questions even though the CalEITC calculation produces no credit. Attach the form to the California return or complete those sections in your software.
- Choose an available filing route. CalFile is free for eligible California returns, but its income and return-type limits still apply. It files the California return only. For help with state and federal filing, use the free tax-help locator and ask whether a site handles your return and is taking appointments. Self-employment, losses or prior years may need a different preparer.
If you already filed without YCTC, use the California amended-return instructions to correct that year; do not submit a second original return. A missed prior year may still be claimable, but a refund has a time limit. The usual limit is four years from the original due date, with different calculations for some timely returns filed during an extension period, later payments and other exceptions. Check the deadline for your actual filing history before assuming an old year remains open.
After filing: check the refund, not just submission
Save the return, completed Form 3514 and filing confirmation. If an electronic return is rejected, fix the rejection and resubmit; a rejected submission has not completed filing. Once the return is accepted, use Where's My Refund with the refund amount shown on your return. Verification or adjustments can delay or change that amount.
If a letter asks about your child's residence, income or a loss, answer by the letter's deadline with the requested records. If the credit was reduced or denied, compare the explanation with your Form 3514 and ask FTB or your preparer how to correct or dispute it. Filing confirmation alone does not establish that the credit was allowed.
Related help for a family with a young child
Check federal credits separately on the IRS return: the federal Child Tax Credit and federal EITC have different identification and eligibility rules. If food is the immediate problem, you can apply for CalFresh without waiting for a tax refund. California WIC serves eligible pregnant, postpartum and breastfeeding people, infants and children under 5. Its child-age window is different from YCTC's.
Quick answers
My child turned 6 in 2025. Can I use that child for YCTC?
No. The child must be under 6 at the end of 2025. Another qualifying child under 6 may still allow the claim.
Can I claim YCTC with no job income?
Possibly. Use the zero-or-negative-income exception above and meet the remaining requirements. You do not need an allowed CalEITC payment under that exception.
Is it $1,189 for each child?
No. It is up to $1,189 for the eligible return. Form 3514 determines the actual amount.
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