Question

3. During 2024, Claire, a California resident, paid $4,000 to a daycare center to care for her 3-year-old son while she was at work. Her federal adjusted gross income is $70,050. What is the amount of her California Child and Dependent Care Expenses Credit?

Answer 1

First compute the federal child and dependent care credit, then apply California’s percentage.

1) Federal credit
- Only $3,000 of the $4,000 paid is allowed for one child.
- With AGI $70,050 the federal credit rate is the minimum 20%.
- Federal credit = 20% × $3,000 = $600.

2) California credit
- California’s child and dependent care expenses credit is a percentage of the federal credit; the percentage is taken from a CA AGI-based table in the Form 540 instructions.
- I can compute the exact California credit for you if you want me to look up (or if you give) the CA percentage for AGI $70,050.

If you want a quick illustration: if the CA percentage were 20%, the CA credit would be 20% × $600 = $120; if it were 24%, the CA credit would be 24% × $600 = $144.

Would you like me to look up the exact 2024 California percentage and give the precise dollar amount?