California Child and Dependent Care Expenses Credit

Child and Dependent Care Expenses Credit
2023 Form 3506 Child and Dependent Care Expenses Credit
CALIFORNIA FORM

TAXABLE YEAR

3506

2023 Child and Dependent Care Expenses Credit
Attach to your California Form 540 or Form 540NR.
SSN or ITIN

Name(s) as shown on tax return

Part I

Unearned Income and Other Funds Received in 2023. See instructions.

Source of Income/Funds

Source of Income/Funds

Amount

Amount

Part II Persons or Organizations Who Provided the Care in California – You must complete this part. See instructions.
1 Enter 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
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?
e. Identification number (SSN, ITIN, or FEIN)

□

Person

□

□

Organization

Person

□

Organization

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
2 Information about your qualifying person(s). See instructions.
(a)
Qualifying person’s name
First

Last

(b)
Qualifying person’s
social security number (SSN)
(See instructions)

(c)
Qualifying person’s
date of birth
(DOB – mm/dd/yyyy)
or disability status
DOB:_____________

(d)
Percentage of
physical custody
(See instructions)

(e)
Qualified expenses you
incurred and paid in 2023 for
the qualifying person’s
care in California

Disabled □ Yes
DOB:_____________
Disabled □ Yes
DOB:_____________
Disabled

□

Yes

3 Add 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 33 . . . . . . . . . . . . . . . . . . . . . . . .

3

00

4 Enter YOUR earned income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
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.
5 If married or an RDP filing a joint return, enter YOUR SPOUSE’S/RDP’s earned income. (If your spouse/RDP was a
5
student or was disabled, see instructions.) If you are not filing a joint tax 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7 Enter the decimal amount shown in the chart of the instructions for line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
8 Multiply line 6 by the decimal amount on line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
9 Enter the decimal amount listed in the chart of the instructions for line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
10 Multiply line 8 by the decimal amount on line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Credit for prior year expenses paid in 2023. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 Add line 10 and line 11. Enter the amount here and on Form 540, line 40; or Form 540NR, line 50 . . . . . . . . . . . . . . . . . . . . . . . . 12

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For Privacy Notice, get FTB 1131 EN-SP.

7251233

FTB 3506 2023

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Side 1

Part IV Dependent Care Benefits
13 Enter the total amount of dependent care benefits you received for 2023. This amount should be shown in box 10 of
your federal Form(s) W-2. Do not include amounts that were reported to you as wages in box 1 of federal 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. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

00

14 Enter the amount, if any, you carried over from 2022 and used in 2023 during the grace period. See instructions . . . . . . . 14

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15 Enter the amount, if any, you forfeited or carried forward to 2024. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

00

16 Combine line 13 through line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17 Enter the total amount of qualified expenses incurred in 2023 for the
care of the qualifying person(s). See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
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00

18 Enter the smaller of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Enter YOUR earned income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
20 If 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 tax return, see the instructions
for the amount to enter; all others, enter the amount from line 19 . . . . . . . . . . . . . . . . 20

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21 Enter the smallest of line 18, line 19, or line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
00
22 Enter $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). However, do not enter more
than the maximum amount allowed under your dependent care plan . . . . . . . . . . . . . . 22
00
23 Enter the amount from line 13 that you received from your sole proprietorship or partnership.
If you did not receive any amounts, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24 Subtract line 23 from line 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
00
25 Deductible benefits. Enter the smallest of line 21, line 22, or line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 Excluded benefits. Subtract line 25 from the smaller of line 21 or line 22. If zero or less, enter -0- . . . . . . . . . . . . . . . . . .
27 Taxable benefits. Subtract line 26 from line 24. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28 Enter $3,000 ($6,000 if two or more qualifying persons) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 Add line 25 and line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30 Subtract line 29 from line 28. If zero or less, stop. You do not qualify for the credit.
Exception – If you paid 2022 expenses in 2023, see instructions for line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31 Complete Side 1, Part III, line 2. Add the amounts in column (e) and enter the total here . . . . . . . . . . . . . . . . . . . . . . . . . .
32 Enter the amount from your federal Form 2441, Part III, line 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33 Enter the smaller of line 30, line 31, or line 32. Also, enter this amount on Side 1, Part III, line 3 and
complete Part III, line 4 through line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

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25
26
27
28
29

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30
31
32

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33

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Worksheet – Credit for 2022 Expenses Paid in 2023
1. Enter your 2022 qualified expenses paid in 2022. If you did not claim the credit for these expenses on your 2022
tax return, get and complete a 2022 form FTB 3506 for these expenses. You may need to amend your 2022 tax return . . . . . . .
2. Enter your 2022 qualified expenses paid in 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Add line 1 and line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter $3,000 if care was for one qualifying person ($6,000 for two or more) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Enter any dependent care benefits received for 2022 and excluded from your income
(from your 2022 form FTB 3506, Part IV, line 26) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.
2.
3.
4.
5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Compare your and your spouse’s/RDP’s earned income for 2022 and enter the smaller amount. . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. If filing a joint tax return, compare the amounts on line 3, line 6, and line 7 and enter the smallest amount. If not filing
a joint tax return, enter your earned income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Enter the amount from your 2022 form FTB 3506, Side 1, Part III, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Subtract line 9 from line 8. If zero or less, stop. You cannot increase
your credit by any previous year’s expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter your 2022 federal adjusted gross income (AGI) (from your 2022 Form 540, line 13;
or Form 540NR, line 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. 2022 federal AGI decimal amount (from 2022 form FTB 3506, instructions for line 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

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13. Multiply line 10 by line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. 2022 California AGI decimal amount (from 2022 form FTB 3506, instructions for line 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Multiply line 13 by line 14. Enter the result here and on your 2023 form FTB 3506, Side 1, Part III, line 11 . . . . . . . . . . . . . . . . . 15.

Side 2

FTB 3506 2023

7252233

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