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Category: California

California Credits

Child Care Credit: For taxable years beginning on or after January 1, 2011, the child and dependent care expenses credit is nonrefundable. You may qualify to claim this credit in 2013 for child and dependent care expenses if you paid someone in California to care for your child or other qualifying person while you worked or looked for work. Note: You must have California earned income to qualify for this credit.

California Nonrefundable Renter's Credit: This is a personal income tax credit that can only be used to offset your tax liability; therefore, you must have a tax liability to claim the credit. You qualify for the Nonredundable Renter's Credit if you meet all of the following:

  • You were a resident of California in 2013.
  • Your California adjusted gross income is $35,955 or less if your filing status is single or married/registered domestic partner filing a separate return; or $71,910 or less if you are married/registered domestic partner filing jointly. head of household, or qualified widow(er).
  • You paid rent for at least half of 2013 for property in California that was your principal residence.
  • You did not live with another person for more than half the year (such as a parent) who claimed you as a dependent in 2013.
  • You are not a minor living with and under the care of a parent, foster parent, or legal guardian.
  • You rented property for more than half the year that was not exempt from California property tax in 2013.
  • If you are married, neither you nor your spouse/registered domestic partner was granted a homeowner's property tax exemption during 2013. Note: You can still qualify for the credit, even though your spouse/registered domestic partner claimed a homeowner's exemption, as long as each of you maintained a separate residence for the entire year in 2013.

If you meet the requirements above, the credit is:

  • Single, $60
  • Head of Household or widow(er), $120
  • Married/registered domestic partner filing separately, $60
  • Married/registered domestic partner filing jointly, $120

Child Adoption: For the year in which an adoption decree or an order of adoption is entered, you are allowed to claim a credit for 50% of the cost of adopting a child who was both:

  • A citizen or legal resident of the United States.
  • In the custody of a California public agency or a California political subdivision.

Note: This credit does not apply when a child is adopted from another country or another state, or was not in the custody of a California public agency or a California political subdivision. Also, any deduction for the expenses used to claim this credit must be reduced by the amount of the child adoption costs credit claimed.

Community Development Financial Institution: This credit has been extended for taxable years beginning on or after January 1, 2012 and before January 1, 2017. 20% of each qualified deposit made to a community development financial institution. For more information click here

Dependent Parent: You may NOT claim this credit if you used the single, head of household, qualifying widow(er), or married/RDP filing jointly filing status. Claim this credit only if all of the following apply:

1) You were married/or an RDP at the end of 2013 and you used the
married/RDP filing separately filing status.

2) Your spouse/RDP (Registered Domestic Partner) was not a member of your household during the last six months of the year.

3) You furnished over one-half the household expenses for your dependent mother’s or father’s home, whether or not she or he lived in your home. If you qualify for the Credit for Joint Custody Head of Household and the Credit for Dependent Parent, claim only one credit. Select the credit that allows the maximum benefit.

* Enterprise Zone Employee: To qualify for this credit in 2013, you need to meet all of the following:

  • Performed at least 50% of your compensated work (for the employer located within the EZ) within boundaries of an enterprise zone in California.
  • Spent at least 90% of your work time(for the employer located within the EZ) on activities that are directly related to the operation of the trade or business located within the EZ.
  • Did not work for any federal, California state, or local government.

For more information click here

Farmworker Housing: For taxable years beginning on or after January 1, 2009, the farmworker housing credit has been consolidated into the low-income housing tax credit. For more information click here

Joint Custody Head of Household: 30% credit percentage or $401 (whichever is less). You may NOT claim this credit if you used the married/RDP filing jointly, head of household, or qualifying widow(er) filing status.

Claim the credit if:

  • unmarried and not an RDP (Registered Domestic Partner) at the end of 2013 (or if married/or an RDP, you lived apart from your spouse/RDP for all of 2013 and you used the married/RDP filing separately filing status); AND
  • if you furnished more than one-half the household expenses for your home that also served as the main home of your child, step-child, or grandchild for at least 146 days but not more than 219 days of the taxable year.

If the child is married or an RDP, you must be entitled to claim a dependent exemption credit for the child.

If you qualify for the Credit for Joint Custody Head of Household and the Credit for Dependent Parent, claim only one credit. Select the credit that allows the maximum benefit.

*Local Agency Military Base Recovery Area (LAMBRA) Hiring & Sales or Use Tax: For more information FTB 3807 Business incentives for LAMBRAs.

*Manufacturing Enhancement Area (MEA) Hiring: FTB 3808 Percentage of qualified wages paid to qualified disadvantaged individual. For more information click here

*Prison Inmate Labor: California allows a credit equal to 10% of the wages paid to each prisoner who is employed under an approved joint venture with the California Department of Corrections. The credit amount is based on wages paid to each qualifying employee during the taxable year for the duration of the contract agreement. The credit applies only to wages paid pursuant to a contract agreement, between the director of corrections and the joint venture employer, executed on or before the day the individual begins work for the employer. For more information click here

Senior Head of Household: 2% of taxable income or $1,272 (whichever is less). You may claim this credit if you:

1) Were 65 years of age or older on December 31, 2013.*

2) Qualified as a head of household in 2011 or 2012 by providing a household for a qualifying individual who died during 2011 or 2012.

3) Did not have AGI over $67,520 for 2013.

* If your 65th birthday is on January 1, 2014, you are considered to be age 65 on December 31, 2013.

*Targeted Tax Area (TTA) Hiring & Sales or Use Tax: Business incentives for TTA businesses – FTB 3809

2010 New Home/First-Time Buyer Credit - To claim the New Home/First-Time Buyer Credits of 2010 you must have received a Certificate of Allocation from the Franchise Tax Board (FTB). The New Home/First-Time Buyer Credits of 2010 are available for taxpayers who purchased a qualified principal residence on or after May1, 2010, and on or before December 31, 2010. Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after January 1, 2011, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.

2009 New Home Credit - For taxable years beginning on or after March 1, 2009, and before March 1, 2010, a home credit against net tax will be allowed for the purchase of a never been occupied home in an amount equal to the lesser of 5% of the purchase price of a qualified principal residence or ten thousand dollars ($10,000).

**Repealed Credits: The expiration dates for the credits listed below have passed. However, these credits had carryover provisions. You may claim these credits only if there is a carryover available from prior years. If you are not required to complete Schedule P (540), Alternative Minimum Tax and Credit Limitations – Residents, get form FTB 3540, Credit Carryover Summary, to figure your credit carryover to future years.

The credits include:

Agricultural Products Commercial Solar Electric System Commercial Solar Energy
Employee Ridesharing Employer Ridesharing: Large employer Ride Sharing: Small employer
Transit passes, Energy Conservation Farmworker Housing Joint Strike Fighter Wages
Joint Strike Fighter Property Cost Los Angeles Revitalization Zone Hiring & Sales or Use Tax
Low-Emission Vehicles Manufacturers' Investment Orphan Drug
Political Contributions Recycling Equipment Residential Rental & Farm Sales Rice Straw
Ridesharing Salmon & Steelhead Trout Habitat Restoration Solar Energy
Solar Pump Solar or Wind Energy System Water Conservation
Young Infant

*Credits signified with an (*) cannot be e-filed and may need an accompanying form.

For further instructions on several of the categories listed above click here