California Child Care Credit Form 3506

If you paid for child or dependent care so you could work or look for work, you may qualify for the California Child and Dependent Care Expenses Credit. This credit can help reduce your California income tax liability. The credit is nonrefundable, which means it can reduce your tax liability to zero, but it cannot generate a refund by itself. 

• $3,000 for one qualifying person.
• $6,000 for two or more qualifying persons.

Who Qualifies?

You may qualify if all of the following apply:

• You paid for care for a qualifying child, spouse/RDP, or other qualifying dependent while you worked or looked for work.
• You had earned income during the tax year. 
• The care was provided in California. 
• Your federal adjusted gross income (AGI) was $100,000 or less. 
• If married or a registered domestic partner, you generally filed a joint return. 
• You and the qualifying person generally lived in the same home for more than half the year.

Common Reasons You May Not Qualify

You may not be eligible for the credit if:

• Your federal AGI exceeds $100,000.
• The care was provided outside of California. 
• You did not have earned income. 
• The care provider was a disqualified individual, such as your spouse or the child's parent. 
• The care expenses were not incurred so you could work or look for work. 

Program Entry

1. Select State from the sidebar menu.
2. Edit the California return (select the 3 dots).
3. Select Credits.
4. Child Care Credit.

Additional Information 

For additional information review the Form FTB 3506 instructions here.