• All California-only credits are reached from the Credits menu page in the State Section. Those listed are: Child Care Credit; Renter’s Credit; Schedule S, Other State Tax Credit; and CA Earned Income Credit.
    • Schedule S, Other State Tax Credit, is out-of-scope.
      • If the taxpayer decides not to claim credit for taxes paid to other state(s), then Schedule S isn’t needed and the return is in scope.
    • For CA credits other than the four listed, use the Other Credits link. (A)
      • TaxSlayer allows entering a maximum of two credits on the Other Credits page.
  • All of California’s credits are nonrefundable except CalEITC, Young Child Tax Credit, and Foster Youth Tax Credit. That means that if line 34, Tax, is zero, then only those three refundable credits can generate a tax refund for the taxpayer, assuming s/he had no California tax withholding.

Child and Dependent Care Credit (CA 3506), CA Form 540, Page 2, line 40 (B)

College Access Tax Credit, Code 235, CA Form 540, Page 2, lines 43-45 (A)

  • This credit is for people who make cash contributions to the College Access Tax Credit (CATC) Fund.
  • Donors must apply for the credit and get certified by the California Educational Facilities Authority (CEFA) before they can make the donation.
  • For tax years through 2027, the amount of the credit for each tax year is 50% of the amount contributed. 
  • Only the non-credit part of the contribution is allowed as an itemized deduction on Schedule A. 

Joint Custody Head of Household Credit, Code 170, CA Form 540, Page 2, lines 43-45 (A)

  • This credit is available to a person who files as Single or as MFS if:
    • The person paid more than one-half the household expenses for their home
    • Which is the main home of the taxpayer’s child, stepchild, or grandchild for at least 146 days but less than 219 days of the taxable year
    • And the custody arrangement for the child is part of a decree of dissolution or legal separation, or part of a written agreement entered into before the final decree is issued.
  • If MFS, the taxpayer must have lived apart from their spouse/RDP for the entire tax year.
  • The credit is 30% of the tax due (CA Form 540, page 2, line 35), limited to a 2025 maximum of $610.
  • The credit can’t be claimed if the Dependent Parent Credit, code 173, is claimed.
  • See FTB Instructions for Form 540 if there are any questions about entitlement to this credit.

Dependent Parent Credit, Code 173, CA Form 540, Page 2, lines 43-45 (A)

  • Note: There are very limited situations where a MFS return is in-scope – see page 14.
  • This credit is available to a person filing MFS where:
    • The spouse did not live in the taxpayer’s household during the last six months of the year.
    • The taxpayer has a mother or father who is their dependent.
    • The taxpayer paid more than half of household expenses of that dependent, whether or not the dependent lived in the taxpayer’s home.
  • The credit is 30% of the tax due (CA Form 540, page 2, line 35), maximum same as Joint Custody HOH Credit, directly above.
  • Note: The credit can’t be claimed if the Joint Custody HoH Credit code 170 is claimed.
  • FTB Instructions for Form 540 has full details if there are questions.

Senior Head of Household Credit, CA Form 540, Page 2, lines 43-45 (A)

  • This credit is available for a person 65 or older who:
    • Qualified as head of household for at least one of the two prior tax years
    • Does not qualify for HoH in the current tax year because the qualifying relative for HoH died within the two prior tax years (note that this need not be a child)
    • Has 2025 AGI of $98,652 or less – caution, TaxSlayer may not apply this income limit properly.
  • Generate the PDF of the State Return in TaxSlayer, to see CA Taxable Income on Form 540, page 2, line 19.
  • Go to State Section > California Return > Credits > Other Credits.
  • Pick Senior Head of Household Credit from the dropdown menu.
  • Multiply the CA Taxable Income by 0.02 and enter in TaxSlayer.
  • The maximum 2025 credit is $1,860.

Child Adoption Credit, Code 197-- out-of-scope

Renter’s Credit, CA Form 540, Page 2, 1ine 46 (B)

  • Since TaxSlayer asks about this credit for every CA return, see page 100 (near the top of the State section).

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