Fact Sheet: California Dependent Care Credit
(New for 2000)
What it is: A new, refundable credit first available for tax year 2000 worth up to $907. You apply this credit to any California tax you owe; and even if you don’t owe tax to California, you may still be eligible to receive money back from the FTB!
How you get it: 1) Complete your federal income tax return. Get the federal
child and dependent care credit by filing federal form 1040 and attaching Schedule 2441, or federal form 1040A and attaching Schedule 2.
2) If you are eligible for the federal child and dependent care credit, fill in the names and social security numbers of the dependents you are claiming credit for on lines 42 and 43 of California form 540 or lines 28 and 29 on form 540A. You cannot get this credit if you use the federal form 1040EZ or California form 540 2EZ.
3) Fill in the amount of the federal child and dependent care expenses credit from federal form 2441 (line 9) or Schedule 2, (line 9) on line 44 of form 540 (or on line 30 of form 540A). (If your federal credit was limited by the federal taxable amount, fill in the federal credit amount before you applied the limitation).
3) Figure the amount of your credit using the worksheet on page 18 of the 540 instructions. Fill in the amount of the credit on line 45 of form 540 (line 31 of form 540A)
Rules: 1) If you did not qualify for this credit on the federal return, you cannot
claim it on your California return.
2) If your adjusted gross income is more than $100,000 you cannot claim
this credit.
3) The California credit is a percentage of the federal credit, based on your California adjusted gross income as follows:
California AGI (540 line 17 or
540A line 14): California
Credit:
$40,000.00 or less 63% of federal credit
More than $40,000, but less than $70,000 53% of federal credit
$70,000.00 or more but less than $100,000 42% of federal credit
$100,000 or more: No California credit