Instructions For Form Ftb 3506 (Page 3 of 3) in pdf

For each month or part of a month your spouse was a student or was

expenses you paid in 2001 for care that was provided in 2000 and

disabled, he or she is considered to have worked and earned income.

expenses you paid in 2001 for care that was provided in 2002. Identify

His or her earned income for each month is considered to be at least

the work-related care expenses that you are entitled to claim in Part III,

$200 ($400 if more than one qualifying person was cared for in 2001).

line 2, column (e) by comparing your cancelled checks/credit card

If your spouse also worked during that month, use the higher of $200

statements for 2001 to your monthly care service invoices or bills (pay

(or $400 if more than one qualifying person) or his or her actual earned

particular attention to the months of January and December). These

income for that month. If, in the same month, both you and your

are the expenses you paid in 2001 for care that was provided in 2001.

spouse were either students or disabled, only one of you can be treated

Lastly, use the worksheet on Side 2 to determine whether you are

as having earned income in that month. For any month that your

entitled to increase the amount of your credit for 2001 based on work-

spouse was not a student or disabled, use your spouse’s actual earned

related expenses for care that was provided in 2000 but that you paid

in 2001.

income if he or she worked during the month.

Note: Keep a record of payments you made in 2001 for care that was

Line 7

provided in 2002. You will use these amounts when you calculate your

2002 credit.

Determine your federal adjusted gross income (AGI) from Form 540A,

line 12a; Form 540, line 13; or Long Form 540NR, line 13. Then use the

Part IV

chart below to determine the decimal amount to enter on line 7.

Line 13 – Line 16

If your Federal AGI is:

The decimal amount

Nonresidents and part-year residents must complete and attach

Over

But not over

on Line 7 is:

Schedule CA (540NR), California Adjustments - Nonresidents or Part-

Year Residents, to their Long Form 540NR tax return. If Part I of

$10,000 . . . . . . . . . . . . . . . . . . . . . .30

Schedule CA (540NR) is not fully completed, your credit may be

10,000

12,000 . . . . . . . . . . . . . . . . . . . . . .29

disallowed.

12,000

14,000 . . . . . . . . . . . . . . . . . . . . . .28

You must maintain your primary home in California for yourself and

your qualifying person(s) during the year or portion of the year to

14,000

16,000 . . . . . . . . . . . . . . . . . . . . . .27

qualify for the credit. Full-year nonresidents of California who retained

16,000

18,000 . . . . . . . . . . . . . . . . . . . . . .26

their main home in another state do not qualify for this credit.

18,000

20,000 . . . . . . . . . . . . . . . . . . . . . .25

Nonresidents and part-year residents must calculate the percentage of

20,000

22,000 . . . . . . . . . . . . . . . . . . . . . .24

the child and dependent expenses credit that they may be qualified to

22,000

24,000 . . . . . . . . . . . . . . . . . . . . . .23

take. It is based on the ratio from Long Form 540NR, line 25a.

24,000

26,000 . . . . . . . . . . . . . . . . . . . . . .22

Part V

26,000

28,000 . . . . . . . . . . . . . . . . . . . . . .21

28,000

No limit . . . . . . . . . . . . . . . . . . . . . .20

Line 17

Dependent care benefits include amounts your employer paid directly

Line 9

to you or your care provider for the care of your qualifying person(s)

while you worked. These benefits also include the fair market value of

Use the chart below to determine the percentage of the federal credit

care in a day-care facility provided or sponsored by your employer.

that is allowed as a California credit and enter the decimal amount on

Your salary may have been reduced to pay for these benefits. If you

line 9.

received dependent care benefits, they should be shown in box 10 of

If your California AGI from Form 540A,

your 2001 Form(s) W-2.

line 14; Form 540, line 17;

or Long Form 540NR, line 25 is:

The decimal amount on

Line 18

Line 9 is:

If you had a flexible spending account, any amount included on line 17

that you did not receive because you did not incur the expense is

$40,000 or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

considered forfeited. Do not include amounts you expect to receive at

Over $40,000 but not over $70,000 . . . . . . . . . . . . . . . . . . . . . . .53

a future date.

Over $70,000 but not over $100,000 . . . . . . . . . . . . . . . . . . . . . .42

Line 20

Over $100,000 . . . . . . . . . . . Stop. You do not qualify for this credit.

Enter the total of all qualified expenses incurred in 2001 for the care of

your qualifying person(s). It does not matter when the expenses were

Line 11

paid.

If you had work-related expenses for care that was provided in 2000,

Example: You received $2,000 cash under your employer's dependent

but that you paid for in 2001, you may be able to increase the amount

care plan for 2001. The $2,000 is shown in box 10 of your Form W-2.

of your Child and Dependent Care Expenses Credit for 2001. Use the

You incurred $900 of qualified expenses in 2001 for the care of your

worksheet on Side 2 of form FTB 3506 to calculate the amount of

5-year-old dependent child. You would enter $900 on line 20, but

additional credit you may be entitled to claim. See federal Publication

would report the entire $2,000 on line 17.

503 under "How to Figure the Credit" and "Amount of Credit" for

For all other lines, follow specific line instructions on the form. For

guidance on completing line 1 through line 10 of the worksheet. If you

additional information, see federal Form 2441 or Publication 503.

claimed the California Child and Dependent Care Expenses Credit for

the year 2000, you will need a copy of your 2000 California income tax

return, including federal Form 2441 (or Schedule 2, Form 1040A), in

order to properly complete this worksheet.

On form FTB 3506, Part II, line 1, column (e), include all the payments

you made to a qualified care provider(s) during 2001, regardless of

whether the care was actually provided in 2001. This includes

FTB 3506 Instructions (NEW 2001) Page 3

Instructions For Form Ftb 3506 Page 3

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