According to a recent article attributed to Nerd Wallet, tax credits available to an individual taxpayer include:
California State Tax Credits
Tax credits are a type of benefit that decreases your taxes owed by the credit amount. Some credits may also be refundable, meaning if the credit amount exceeds how much you owe in taxes, you might be able to get the overage back in the form of a refund.
Here is an overview of a few popular tax credits available in California for the 2023 tax year (taxes filed in 2024).
California Earned Income Tax Credit (CalEITC)
The CalEITC is a tax benefit that mirrors the federal earned income tax credit. Californians with earned income and federal AGI of up to $30,950 in 2023 may be eligible for a tax credit of up to $3, The exact credit amount depends on your filing status and the number of qualifying children. (People without kids also qualify.)
California Young Child Tax Credit (YCTC)
The refundable young child tax credit is another state-level tax credit modeled after the federal version of the child tax credit. People who qualify for the California earned income tax credit mentioned above and who also had a child younger than 6 by the end of the 2023 tax year are generally eligible for the YCTC. The maximum credit for 2023 is $1,117. The credit begins to phase out for those with an earned income of $25,775 and above and is not available for anyone making above $30,931.
California Child And Dependent Care Tax Credit
The state of California also offers a nonrefundable tax credit for people who may have expenses related to the care of a child, a spouse or another type of dependent. Similar to the federal child and dependent care tax credit, eligible taxpayers can claim a certain limited percentage of their expenses on their state tax returns. For more details about who qualifies as dependent, see the Instructions for Form FTB 3506 on the California Franchise Tax Board’s website.
California Adoption Cost Tax Credit
To help offset the costs associated with adoption, California offers a tax credit that can help cover up to 50% of certain adoption-related expenses. The maximum you can claim for the credit is $2,500 per child per tax year, but the remaining amounts can be claimed on tax returns in future years. Typical expenses covered by the credit include travel, unreimbursed medical costs, and other adoptions and agency fees. The child must have been adopted from California.
California Nonrefundable Renter’s Tax Credit
If your income fell below a certain threshold in 2023, you may be able to claim a nonrefundable tax credit for having paid your rent for at least half of the year (six months). Those who are single/married filed separately and made $50,746 or below can qualify for a $60 credit, and those who are head of household, married filing jointly or qualified widow/er with an income at or below $101,492 can qualify for double, at a total of $120.
