California OTA Partially Finds Taxpayer Entitled to Young Child Tax Credit

The California Office of Tax Appeals (OTA) issued a decision regarding the taxpayer’s appeal against the Franchise Tax Board (FTB), which denied her claim for a refund of $3,326 for the 2023 tax year. The taxpayer claimed the California Earned Income Tax Credit (EITC) of $2,209 and the Young Child Tax Credit (YCTC) of $1,117 based on zero taxable income and reporting business income of $5,799 along with three qualifying children. The FTB requested additional documentation to verify her claims, including proof of her business income. After reviewing the documentation the taxpayer provided, the FTB denied her EITC, stating that ...