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3506 Child and dependent care

November 02, 2016 • Anonymous • Log In to Post Comments

Married filing jointly taxpayers had federal AGI of $95K and about $100,100 CA AGI.

The Lacerte software program allowed the CA Form 3506 to print and allowed a $231 Child and dependent care expenses credit for tax year 2015.

Taxpayers got a notice from FTB disallowing the credit because CA AGI of $100,100 is more than the $100K threshold to allow the credit.

Is the FTB correct?


Comments

Anonymous,

Yes, that is correct.  The California child and dependent care credit starts phasing out at lower income amounts, but is totally phased out once CA AGI hits $100k.  Here is a link to the FTB's explanation: https://www.ftb.ca.gov/individuals/faq/ivr/103.shtml

Thanks-I have no idea why Lacerte software allowed a child and dependent care credit when taxpayer's AGI was a little over $100K. 

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