Question

What is their allowable Child and Dependent Care Expenses Credit on Form 3506, line 12 for married filing jointly and AGI of $96,900?

Answer 1

I don’t have enough information to compute line 12. Which tax year is this for, and what do you already have (the federal Form 2441 credit amount or the qualified expenses and both spouses’ earned incomes)?

What I need to compute the California Form 3506 line 12:
- tax year (percentages/thresholds change by year), and
- either
- the federal child and dependent care credit amount (Form 2441, line 11), or
- the qualified care expenses, number of qualifying persons, and each spouse’s earned income so I can compute the federal credit first.

How it’s computed (summary):
1. Compute the federal credit (Form 2441) — that gives the credit amount on line 11 of Form 2441.
2. On CA Form 3506 you multiply that federal credit by the California percentage that applies to your AGI (from the CA table for the tax year). The result is Form 3506, line 12 (the allowable CA credit).

If you give me the tax year and either the federal credit amount or the expense/earnings details, I’ll compute the exact line 12 amount.