The California Form 3506 is designed to help taxpayers claim the Child and Dependent Care Expenses Credit. This form allows eligible individuals to report care expenses incurred for their qualifying children or dependents, potentially reducing their overall tax liability. To ensure you maximize your benefits, consider filling out the form by clicking the button below.
The California 3506 form is an important document for those seeking to claim the Child and Dependent Care Expenses Credit on their state tax returns. This form is specifically designed for individuals who have incurred expenses for the care of qualifying children or dependents while they work or look for work. To start, you'll need to provide your name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) at the top. The form is divided into several parts, each addressing different aspects of your care expenses. In the first part, you’ll list any unearned income and other funds received during the taxable year. Next, you’ll need to detail the care providers in California, as only care provided within the state qualifies for the credit. This section requires information such as the provider's name, address, and the amount you paid for their services. Following this, the form will guide you through calculating your credit based on qualifying expenses and your earned income. If you received dependent care benefits, there’s a separate section to report that as well. Completing this form accurately is crucial, as it can significantly impact your tax refund or liability. Overall, the California 3506 form helps ensure that families receive the financial support they need for child and dependent care expenses.
TAXABLE YEAR
CALIFORNIA FORM
2009
Child and Dependent Care Expenses Credit
3506
Attach to your California Form 540, 540A, or Long Form 540NR.
Name(s) as shown on return
SSN or ITIN
-
Part I Unearned Income and Other Funds Received in 2009. See instructions.
SOURCE OF INCOME/FUNDS
AMOUNT
Part II Persons or Organizations Who Provided the Care in California – You must complete this part. See instructions.
1Enter the following information for each person or organization that provided care in California. Only care provided in California qualifies for the credit. If you need more space, attach a separate sheet.
Provider
a. Care provider’s name
b. Care provider’s address
(number, street, apt. no., city, state,
and ZIP Code)
c.
Care provider’s telephone number
(
)
d.
Is provider a person or organization?
Person Organization
Person
Organization
e.
Identification number (SSN or FEIN)
f.Address where care was provided (number, street, apt. no., city, state, and ZIP Code) PO Box not acceptable.
g. Amount paid for care provided
Did you receive dependent care benefits?
No. Complete Part III below.
Yes. Complete Part IV on Side 2 before you complete Part III.
Part III Credit for Child and Dependent Care Expenses
2Information about your qualifying person(s). See instructions.
(a)
(b)
(c)
(d)
(e)
Qualifying person’s name
Qualifying person’s
Percentage of
Qualified expenses you
social security number (SSN)
date of birth
physical custody
incurred and paid in 2009 for
(See instructions)
(DOB – mm/dd/yyyy)
the qualifying person’s
First
Last
or if disabled
care in California
DOB:_____________
Disabled Yes
3Add the amounts in column (e) of line 2. Do not enter more than $3,000 for one qualifying person or $6,000 for two
or more qualifying persons. If you completed Side 2, Part IV, enter the amount from line 34 . . . . . . . . . . . . . . . . . . . .
4 Enter YOUR earned income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nonresidents: Enter only your earned income from California sources. If you do not have earned income from California sources, stop, you do not qualify for the credit. Military servicemembers, see instructions.
Part-year residents: Enter the total of (1) your earned income from California sources received while you were a nonresident and (2) all earned income received while you were a resident. Military servicemembers, see instructions.
5If married or an RDP filing a joint return, enter YOUR SPOUSE’S/RDP’s earned income. (If your spouse/RDP was a
student or was disabled, see the instructions.) If not filing a joint return, enter the amount from line 4 . . . . . . . . . . . .
Nonresidents: Enter only your spouse’s/RDP’s earned income from California sources. If your spouse/RDP does not have earned income from California sources, stop, you do not qualify for the credit. Military servicemembers, see line 4 instructions. Part-year residents: Enter the total of (1) your spouse’s/RDP’s earned income from California sources received while he or she was a nonresident and (2) all earned income your spouse/RDP received while he or she was a resident. Military servicemembers, see line 4 instructions.
6 Enter the smallest of line 3, line 4, or line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Enter the decimal amount shown in the chart on page 4 of the instructions for line 7 . . . . . . . . . . . . . . . . . . . . . . . . . .
8Multiply line 6 by the decimal amount on line 7. Enter the amount here and on Form 540/540A; line 77;
or Long Form 540NR, line 87
9
Enter the decimal amount listed in the chart on page 4 of the instructions for line 9
10
Multiply the amount on line 8 by the decimal amount on line 9
11
Credit for prior year expenses paid in 2009. See instructions for line 11
12
Add line 10 and line 11. Enter the amount here and on Form 540/540A, line 78; or Long Form 540NR, line 88
3
00
4
5
6
7
X. ___ ___
8
7251093
FTB 3506 2009 Side 1
Part IV Dependent Care Benefits
13Enter the total amount of dependent care benefits you received for 2009. This amount should be shown in box 10 of your Form(s) W-2. Do not include amounts that were reported to you as wages in box 1 of Form(s) W-2. If you were self-employed or a partner, include amounts you received under a dependent care assistance program from your
sole proprietorship or partnership
13
14
Enter the amount, if any, you carried over from 2008 and used in 2009 during the grace period
15
Enter the amount, if any, you forfeited or carried forward to 2010
(
) 00
16
Combine line 13 through line 15
17Enter the total amount of qualified expenses incurred in 2009 for the
care of the qualifying person(s). See instructions
17
18
Enter the smaller of line 16 or line 17
19
Enter YOUR earned income
20If married or an RDP filing a joint return, enter YOUR SPOUSE’S/RDP’s earned income (if your spouse/RDP was a student or was disabled, see the instructions for line 5); if married or an RDP filing a separate return, see the instructions for the
amount to enter; all others, enter the amount from line 19
20
21 Enter the smallest of line 18, line 19, or line 20
21
22Enter $5,000 ($2,500 if married or an RDP filing separately and you were required
to enter your spouse’s/RDP’s earned income on line 20)
22
23Enter the amount from line 13 that you received from your sole proprietorship or partnership. If you did not receive
any amounts, enter -0-
. . . . . . . . . . . . . . . . . . . . .
23.
24
Subtract line 23 from line 16
25
Enter the smaller of line 21 or line 22
26
Deductible benefits. Enter the smallest of line 21, line 22, or line 23
.
27
Excluded benefits. Subtract line 26 from line 25. If zero or less, enter -0-
28
Taxable benefits. Subtract line 27 from line 24. If zero or less, enter -0-
29
Enter $3,000 ($6,000 if two or more qualifying persons)
30
Add line 26 and line 27
30.
31
Subtract the amount on line 30 from the amount on line 29. If zero or less, stop. You do not qualify for the credit.
Exception – If you paid 2008 expenses in 2009, see instructions for line 11
32
Complete Side 1, Part III, line 2. Add the amounts in column (e) and enter the total here
33
Enter the amount from your federal Form 2441, Part III, line 34
33.
34
Enter the smaller of line 31, line 32, or line 33. Also, enter this amount on Side 1, Part III, line 3 and
complete line 4 through line 12
34.
Worksheet – Credit for 2008 Expenses Paid in 2009
1.
Enter your 2008 qualified expenses paid in 2008. If you did not claim the credit for these expenses on your 2008
return, get and complete a 2008 form FTB 3506 for these expenses. You may need to amend your 2008 return
. . .
. . . .
. 1.____________________
2.
Enter your 2008 qualified expenses paid in 2009
. 2.____________________
3.
Add the amounts on line 1 and line 2
. 3.____________________
4.
Enter $3,000 if care was for one qualifying person ($6,000 for two or more)
. 4.____________________
5.
Enter any dependent care benefits received for 2008 and excluded from your income
(from your 2008 form FTB 3506, Part IV, line 28)
. 5.____________________
6.
Subtract amount on line 5 from amount on line 4 and enter the result
. 6.____________________
7.
Compare your and your spouse’s/RDP’s earned income for 2008 and enter the smaller amount
. 7.____________________
8.
Compare the amounts on line 3, line 6, and line 7 and enter the smallest amount
. 8.____________________
9.
Enter the amount from your 2008 form FTB 3506, Side 1, Part III, line 6
. 9.____________________
10.
Subtract amount on line 9 from amount on line 8 and enter the result. If zero or less, stop here. You cannot increase
your credit by any previous year’s expenses
. 10.____________________
11.
Enter your 2008 federal adjusted gross income (AGI) (from your 2008 Form 540/540A, line13;
or Long Form 540NR, line 13)
. 11.____________________
12.
2008 federal AGI decimal amount (from 2008 form FTB 3506, instructions for line 7)
. 12.______ . ______ ______
13.
Multiply line 10 by line 12
. 13.____________________
14.
2008 California AGI decimal amount (from 2008 form FTB 3506, instructions for line 9)
. 14.______ . ______ ______
15.
Multiply line 13 by line 14. Enter the result here and on your 2009 form FTB 3506, Side 1, Part III, line 11
. 15.____________________
Side 2 FTB 3506 2009
7252093
Completing the California 3506 form involves gathering information about your child and dependent care expenses for the taxable year. This form must be attached to your California tax return, such as Form 540, 540A, or Long Form 540NR. Follow these steps to ensure that you fill out the form accurately.
What is the California 3506 form?
The California 3506 form is used to claim the Child and Dependent Care Expenses Credit for the tax year. This form must be attached to your California tax return, specifically Form 540, 540A, or Long Form 540NR. It helps eligible taxpayers receive a credit for expenses incurred while caring for qualifying dependents.
Who qualifies for the Child and Dependent Care Expenses Credit?
To qualify, you must have incurred expenses for the care of a qualifying person while you worked or looked for work. A qualifying person can be a child under 13 or a spouse or dependent who is physically or mentally incapable of self-care. The care must be provided in California to be eligible for the credit.
What information do I need to provide on the form?
You will need to provide details about the care provider, including their name, address, and identification number. Additionally, you must list the amount paid for care and the names and Social Security numbers of the qualifying persons. This information is necessary to calculate your credit accurately.
How do I calculate the amount of my credit?
The credit is based on your qualifying expenses, which can be up to $3,000 for one qualifying person or $6,000 for two or more. You will also need to consider your earned income and your spouse’s earned income if filing jointly. The form provides specific lines to guide you through the calculation process.
What if I received dependent care benefits?
If you received dependent care benefits, you must complete Part IV of the form. This section asks for details about the benefits received, including amounts shown on your W-2 forms. It is essential to include this information, as it can affect your credit calculation.
What happens if I do not have earned income?
If you do not have earned income from California sources, you will not qualify for the credit. This rule applies to both you and your spouse if filing jointly. Be sure to review the instructions carefully to understand how this applies to your situation.
Can I claim the credit if I am a part-year resident?
Yes, part-year residents can claim the credit. You will need to report your earned income from California sources while you were a resident and any income earned while you were a nonresident. Follow the instructions on the form to ensure accurate reporting.
What if I paid for care in a previous year?
If you paid for care in a prior year and did not claim the credit for those expenses, you may still be able to claim them on your current year's form. You will need to complete a worksheet included in the form to calculate the credit based on those previous expenses.
Where do I send the completed form?
The completed California 3506 form should be attached to your California tax return and submitted according to the instructions provided for your specific tax form. Ensure that you keep a copy for your records as well.
What should I do if I need more help with the form?
If you need assistance with the California 3506 form, consider reaching out to a tax professional or the California Franchise Tax Board. They can provide guidance and answer any specific questions you may have regarding your situation.
When filling out the California 3506 form, many individuals make common mistakes that can affect their eligibility for the Child and Dependent Care Expenses Credit. One frequent error is failing to include all qualifying care providers. It is essential to list every person or organization that provided care in California. Omitting even one provider can lead to an incomplete application and result in a lower credit amount.
Another mistake involves incorrect income reporting. Applicants must ensure that they accurately report their earned income from California sources. Nonresidents should only include income earned while physically present in California. Misreporting income can disqualify individuals from receiving the credit altogether.
Many people also overlook the requirement to provide identification numbers for care providers. Each provider must have a valid Social Security Number (SSN) or Federal Employer Identification Number (FEIN). Failing to include this information can delay processing and may require resubmission of the form.
Inaccuracies in calculating qualified expenses represent another common pitfall. Taxpayers must ensure that they do not exceed the maximum allowable amounts—$3,000 for one qualifying person or $6,000 for two or more. Miscalculating these figures can lead to an incorrect credit amount being claimed.
Additionally, some applicants forget to check the dependency status of the qualifying persons. If a qualifying person is disabled, this status must be indicated on the form. Neglecting to do so can result in a lower credit than the taxpayer is entitled to receive.
Finally, many individuals fail to review the instructions thoroughly. The California 3506 form has specific guidelines that must be followed. Ignoring these instructions can lead to mistakes that could have been easily avoided. A careful review before submission can save time and ensure a smoother process.
The California Form 3506 is essential for taxpayers seeking to claim the Child and Dependent Care Expenses Credit. However, it is often accompanied by other important forms and documents that help streamline the tax filing process and ensure accuracy. Below are some commonly used forms that complement the California 3506.
Understanding these forms and how they interact with the California Form 3506 can make the tax filing process smoother. Each document plays a vital role in ensuring you receive the credits and deductions you are entitled to, ultimately reducing your tax burden.
The California Form 3506 is a crucial document for taxpayers seeking to claim the Child and Dependent Care Expenses Credit. Several other forms share similarities with the 3506, particularly in their purpose and structure. Here are five documents that are comparable:
Understanding these forms can help taxpayers navigate the complexities of claiming credits and deductions effectively. Accurate completion of these documents is essential for maximizing potential benefits and ensuring compliance with tax regulations.
When filling out the California 3506 form, it’s important to be careful and thorough. Here are some dos and don'ts to keep in mind:
Understanding the California Form 3506 can be challenging, and several misconceptions can lead to confusion. Here are six common misunderstandings about this form:
By addressing these misconceptions, individuals can approach the California Form 3506 with greater confidence and accuracy, ensuring they take full advantage of available credits.
Filling out the California 3506 form can be a straightforward process if you keep a few key points in mind. Here are nine essential takeaways:
By following these takeaways, you can simplify the process of filling out the California 3506 form and maximize your potential tax credits.