The California Earned Income Tax Credit (CalEITC) and Foster Youth Tax Credit (FYTC) are refundable California tax credits that may increase your refund or reduce the tax you owe. The FYTC is available to eligible current and former foster youth who also qualify for the CalEITC. Both credits are claimed on Form FTB 3514, California Earned Income Tax Credit.
California Earned Income Tax Credit (CalEITC)
CalEITC is a refundable credit for working Californians with low to moderate income. For tax year 2025, eligible taxpayers earning up to $32,900 may qualify for a credit of up to $3,756, depending on income and family size.
Who Qualifies for CalEITC?
To qualify, you must generally meet all of the following requirements:
- Be at least age 18 or have a qualifying child.
- Have earned income of at least $1 and not more than $32,900.
- Have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse or registered domestic partner (RDP), and any qualifying children.
- Live in California for more than half of the tax year.
- Not be eligible to be claimed as another taxpayer's qualifying child.
- Not be eligible to be claimed as another taxpayer's dependent unless you have a qualifying child.
Earned income generally includes wages, salaries, tips, and net earnings from self-employment.
Foster Youth Tax Credit (FYTC)
The Foster Youth Tax Credit provides an additional refundable credit for eligible current and former foster youth. For tax year 2025, the credit provides up to $1,189 per eligible individual, or up to $2,378 for married taxpayers filing jointly when both spouses or RPDs qualify. The credit may increase your refund or reduce the tax you owe.
To qualify for the Foster Youth Tax Credit, you must:
- Qualify for the California Earned Income Tax Credit (CalEITC).
- Be age 18 through 25 at the end of the tax year.
- Have been in foster care at age 13 or older and placed through the California foster care system.
- Claim the credit on Form FTB 3514.
- Meet the foster care verification requirements
Eligible taxpayers may receive a refundable FYTC amount that can increase their refund or reduce any tax due.
Foster Youth Verification
The California Franchise Tax Board (FTB) may verify your foster youth status through one of several methods:
- Providing consent on Form FTB 3514 so the California Department of Social Services (CDSS) can attempt to verify your status through its statewide database.
- Providing a foster youth verification letter with your return when required.
- Responding to an FTB request for additional verification if your status cannot be confirmed through other methods.
Program Pathway
- Select State from the sidebar menu
- Edit California return (click 3 dots)
- Credits
- CA Earned Income Credit & Foster Youth Tax Credit (Form 3514)
Additional Information
The California Franchise Tax Board makes the final determination of eligibility for the CalEITC and FYTC. Be sure that all income, dependent, and residency information in your return is accurate to ensure the correct credit calculation.
For more information about eligibility requirements, refer to FTB Form 3514 instructions here.