3506: Child and Dependent Care Expenses Credit (2024)
California · FTB · Used for tax years 2024
California Form 3506 calculates the Child and Dependent Care Expenses Credit for 2024. It reports care provider information, qualifying persons, care expenses, income, and dependent care benefits. Attach it to your California Form 540 or Form 540NR.
Who files this form
Use Form FTB 3506 to claim the Child and Dependent Care Expenses Credit, and attach it to your California Form 540 or Form 540NR.
Only care provided in California qualifies for the credit. For nonresidents, the form says you do not qualify if you have no earned income from California sources. It gives the same warning for your spouse or registered domestic partner (RDP) when you file a joint return. Military servicemembers are directed to the instructions.
The form refers to instructions for additional qualifying-person and earned-income rules. Those instructions were not provided here.
What you'll need
Have the following information ready:
- Your California Form 540 or Form 540NR, including the name and SSN or ITIN shown on your return.
- Sources and amounts of unearned income and other funds received in 2024 for Part I.
- Each care provider’s name, address, telephone number, SSN, ITIN, or FEIN, whether the provider is a person or organization, the address where care was provided, and the amount paid.
- Each qualifying person’s name, SSN, date of birth or disability status, percentage of physical custody, and qualified California care expenses incurred and paid in 2024.
- Your earned income and, if filing jointly, your spouse’s or RDP’s earned income.
If you received dependent care benefits, Part IV calls for information from federal Form W-2, box 10, and federal Form 2441, Part III, line 31. It also asks about benefits from a sole proprietorship or partnership, amounts carried over from 2023 and used during the 2024 grace period, and amounts forfeited or carried forward to 2025.
For 2023 expenses paid in 2024, the worksheet calls for 2023 expense, benefit, income, return, and FTB 3506 information.
How to file
- Attach Form FTB 3506 to your California Form 540 or Form 540NR.
- Complete Part II with the required care-provider information. Attach a separate sheet if you need more space.
- If you received dependent care benefits, complete Part IV before Part III. Otherwise, complete Part III directly.
- Follow the line calculations. Lines 7 and 9 require decimal amounts from charts in the instructions, which were not provided here.
- Enter the credit from line 12 on Form 540, line 40, or Form 540NR, line 50.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Leaving Part II blank. The form says you must complete the care-provider section.
- Including care outside California. Only care provided in California qualifies.
- Using a PO box for the care location. A PO box is not acceptable for the address where care was provided.
- Skipping Part IV when you received dependent care benefits. Complete it before Part III.
- Exceeding the expense limit on line 3. Do not enter more than $3,000 for one qualifying person or $6,000 for two or more. If you completed Part IV, use line 33 instead.
- Including W-2 wages on line 13. Do not include amounts reported as wages in box 1 of Form W-2.
- Ignoring the stop rule on line 30. If the result is zero or less, the form says you do not qualify for the credit, with an exception directing you to the line 11 instructions if you paid 2023 expenses in 2024.
Questions people ask
Can I claim expenses for care provided outside California?
No. The form says only care provided in California qualifies for the credit.
What if I received dependent care benefits?
Complete Part IV before Part III. Report 2024 dependent care benefits on line 13, excluding amounts reported as wages in box 1 of Form W-2.
Are $3,000 and $6,000 the credit amounts?
No. They are the expense limits shown on line 3 for one qualifying person or two or more qualifying persons. The form then uses earned income and decimal amounts from the instructions to calculate the credit.
What if I paid 2023 care expenses in 2024?
The form includes a worksheet titled “Credit for 2023 Expenses Paid in 2024.” It directs you to enter the worksheet’s final result on your 2024 Form FTB 3506, Part III, line 11.