California offers several personal income tax credits that may reduce the amount of tax you owe. Some credits are nonrefundable and can only reduce your tax liability to zero, while others are refundable and may increase your refund. Not all California credits are supported by TaxSlayer, and some credits referenced in older California tax materials have been repealed. For complete eligibility requirements, refer to the California Franchise Tax Board (FTB) instructions.
Child and Dependent Care Expenses Credit
You may qualify for this nonrefundable credit if you paid someone to care for your qualifying child or dependent so you could work or look for work.
To qualify:
- You must qualify for the federal Child and Dependent Care Credit.
- Your California adjusted gross income (AGI) must be $100,000 or less.
- If you are a part-year resident or nonresident, you must have California-source earned income.
The California credit is calculated as a percentage of your allowable federal credit.
Credit for Joint Custody Head of Household
You may qualify for this nonrefundable credit if all of the following apply:
- You were unmarried and not in a registered domestic partnership (RDP) on the last day of the tax year, or you are filing Married/RDP Filing Separately and lived apart from your spouse or RDP for the entire year.
- You maintained a household for a qualifying child, stepchild, grandchild, or step-grandchild.
- The qualifying child lived in your home for more than 145 days but fewer than 220 days during the year.
- The custody arrangement was established by court order or qualifying written agreement.
Use the applicable California worksheet to calculate the credit.
Credit for Dependent Parent
You may qualify for this nonrefundable credit if:
- You file Married/RDP Filing Separately.
- You lived apart from your spouse or RDP during the last six months of the year.
- You paid more than half the cost of maintaining the home of your dependent parent, whether or not your parent lived with you.
You cannot claim both the Credit for Dependent Parent and the Credit for Joint Custody Head of Household. Claim the credit that provides the greater tax benefit.
Senior Head of Household Credit
You may qualify for this nonrefundable credit if:
- You were age 65 or older at the end of the tax year.
- You qualified as Head of Household in one of the previous two tax years because you maintained a household for a qualifying person who is now deceased.
- Your California AGI does not exceed the annual limit established by the FTB.
If you qualify, use the California worksheet to determine your allowable credit.
Child Adoption Costs Credit
You may qualify for this nonrefundable credit for qualified adoption expenses related to an eligible child.
Key points:
- The child must have been in the custody of a California public agency or political subdivision.
- The credit generally equals 50% of qualified adoption costs.
- The maximum credit is $2,500 per child.
- Unsuccessful adoption expenses that lead to a later successful adoption of the same child are treated as one adoption effort.
See the California instructions for additional requirements and limitations.
Renter's Credit
You may qualify for California's nonrefundable Renter's Credit if:
- You paid rent in California for at least six months during the tax year for property that was your principal residence.
- You meet California income and residency requirements.
See the California instructions to determine whether you qualify.
California Earned Income Tax Credit (CalEITC)
CalEITC is a refundable credit for qualifying working individuals and families.
For tax year 2025:
- Your earned income must be less than $32,901.
- You do not need a qualifying child to qualify.
- The credit can reduce your California tax liability or increase your refund if no tax is due.
Young Child Tax Credit (YCTC)
You may qualify for the Young Child Tax Credit if:
- You qualify for CalEITC, or would otherwise qualify except that your earned income is zero dollars or less; and
- You have at least one qualifying child who was under age 6 on the last day of the tax year.
The Young Child Tax Credit is refundable.
Foster Youth Tax Credit (FYTC)
You may qualify for the Foster Youth Tax Credit if:
- You qualify for CalEITC; and
- You meet California's foster youth eligibility requirements.
The Foster Youth Tax Credit is refundable.
Other California Credits
Additional credits may be available in limited situations, including:
- Other State Tax Credit
- Prior Year Alternative Minimum Tax Credit
- Various credit carryovers from prior years
- Certain business-related credits that require additional forms or documentation
Credits Not Supported
Some California credits require additional forms, certifications, elections, or carryover calculations that are not fully supported in the program.
If you are claiming one of these credits, you may need to print and mail your California return along with any required California credit forms.
Common examples include:
- California Competes Tax Credit (FTB 3531)
- New Employment Credit (FTB 3554)
- College Access Tax Credit (FTB 3592)
- Certain Pass-Through Entity Elective Tax Credit carryover situations
- Various hiring, agricultural, research, and business incentive credits requiring additional California forms or documentation
Refer to the applicable FTB form instructions for filing requirements.
Expired and Repealed Credits
California has repealed several credits that were available in prior years. Although these credits are no longer available as new credits, some taxpayers may still have unused carryovers from prior years. These carryovers generally require additional information and may require the California return to be printed and mailed. Repealed credit carryovers are reported using Form FTB 3540, Credit Carryover and Recapture Summary.
Expired or repealed credits that may require the return to be printed and mailed include:
- LAMBRA Hiring Credit (Local Agency Military Base Recovery Area) - FTB 3807*(cannot be e-filed)*
- Prison Inmate Labor Credit - FTB 3507*(cannot be e-filed)*
- Targeted Tax Area (TTA) Hiring Credit - FTB 3809*(cannot be e-filed)*
- California Competes Tax Credit - FTB 3531
- New Employment Credit - FTB 3554
- College Access Tax Credit - FTB 3592
- Enterprise Zone Hiring Credit - FTB 3805Z*(cannot be e-filed)*
Additional repealed credits with potential carryover provisions include:
- Enterprise Zone Sales or Use Tax Credit
- Manufacturing Investment Credit (MIC)
- Local Agency Military Base Recovery Area (LAMBRA) credits
- Targeted Tax Area (TTA) credits
- Recycling Equipment Credit
- Political Contributions Credit
- Agricultural Products Credit
- Employer Ridesharing Program credits
- Solar Energy Credit
- Commercial Solar Energy Credit
- Commercial Solar Energy System Credit
You may only claim these credits if you have a valid carryover amount from a prior year.
Program Entry
- State
- Edit California Return (Click 3 dots)
- Credits
Additional Information
For additional eligibility requirements and credit calculations, refer to the California Franchise Tax Board instructions for the applicable credit here.