Chat with an FTB Representative

Changes to 2005 Forms

Updates to 2005 Form 3506 Child and Dependent Care Expenses Credit

The revised Internet version is available for download as of 01/30/2008.

Revision Details: R1a and R1b: These changes reflect the new definition of earned income, which excludes nontaxable employee wages and allows a taxpayer to elect to include any nontaxable combat pay in the calculation.

  • This update is located on Form 3506: Revision 1a - Page 3, Column 1, Line 4, Box 1, 1st bullet. Revision 1b - Page 3, Column 1, Line 4, Box 2, 1st bullet. Both revisions are also located on Page 71 of the 540/540A Booklet and Page 241 of the Package X.

Previously read:

R1a - "...other taxable and nontaxable employee compensation including combat pay."
R1b - "...salary, tips, and other taxable and nontaxable employee compensation for working in California."

Revised to:

R1a - "...other taxable employee compensation, as well as, military compensation including compensation for services in a combat zone."
R1b -"...salary, tips, and other taxable employee compensation for working in California, as well as military compensation including compensation for service in a combat zone."

R1a and R1b: The current instructions are incorrect and may cause the taxpayer to calculate an incorrect amount for the credit. This revision will help taxpayers determine the correct amount of the credit.


2005 Updates to Form 3506

Revision Date: 03/24/06

Revision Details: Instructions

A portion of a bullet point was removed because AB 115 changed the definition of earned income for active military pay.

  • FTB 3506 Instructions, Page 3, Column 1, first bullet point, under Nonresidents and Part-Year Residents Only: Earned income from California Sources includes section

It should read:

  • Wages, salary, tips, and other taxable and nontaxable employee compensation for working in California

This change must be made in 2005 Package X, page 241; Form 3506 Booklet, page 71 and the flat version of the FTB 3506, page 3.

The tax liability is minimal.
The revised internet version is available for download.


2005 Updates to Form 3506

Revision Date: 12/31/2005

Revision Details: Child and Dependent Care Expense Credit

Revision to Form 3506 Instructions, page 69 of the Resident Booklet, and instructions page 1 of the Flat version, under Section C Qualifications:

  • The existing first sentence

It should read:

You may take credit if all eight of the following apply. Section C Qualifications, current version has nine requirements.

Removed: 9 You cannot be a dependent of another taxpayer.

  • Item 4 should be added to Rules for Most People on page 69 of the resident booklet and page 1 of the flat version instructions

It should read:

D Qualifying Person Defined

Rules for Most People
A qualifying person is:

  1. A child under age 13 who meets the requirements to be your dependent as a Qualifying Child. And individual who turn 13 during the year qualifies only for the part of the year when he or she was 12 years old.
  2. Your spouse who was physically or mentally incapable of self-care.
  3. Any person who was physically or mentally incapable of self-care who you can claim as a dependent (or could claim as a dependent except that the person had gross income of $3,200 or more or filed a joint return.
  4. Any disabled person not able to care for himself or herself whom you could claim as a dependent except that you (or your spouse of filing a joint return), could be claimed as a dependent on someone else's 2005 return.

Resident Booklet, Form 3506, side 2 worksheet, page 68. The letter X appears on line 13 and line 15. The letter X should be on lines 12 and 14.

Flat version, Form 3506, side 2 worksheet. The letter X appears on line 13 and line 15. The letter X should be on lines 12 and 14.

This revision does not affect the taxpayer's tax liability.
The revised internet version is available for download.


2005 Updates to Form 3506

Revision Date: 12/30/2004

Revision Details: Child and Dependent Care Expense Credit

Revisions were made to the FTB 3506, Side 1, Side 2, and the Instructions. These revisions are required in the Resident's Booklet, pages 57, 58, and 61; the flat on Sides 1 and 2, the Instructions, Page 3; and Package X.

  • Side 1, Part III, line 5

It should read:

"Nonresidents: Enter only your spouse's earned income from California sources. If your spouse does not have earned income from California sources, ..."

"Part-year residents. Enter the total..."

  • Side 2, Part IV, lines 23 through 28

It should read:

Line 23 - Enter $5,000 ($2,500 if married filing separately and you were required to enter your spouse's earned income on line 19)

Line 24 - Deductible benefits. Enter the smallest of line 20, 21, or 23. Also, include this amount on the appropriate line(s) of your return.

Line 25 - Enter the smaller of line 20 or 23

Line 26 - Enter the amount from line 24

Line 27 - Excluded benefits. Subtract line 26 from line 25.If zero or less, enter -0-

Line 28 - Taxable benefits. Subtract line 27 from line 22. If zero or less, enter -0-

The rest of the form was renumbered.

  • Page 3 of the FTB 3506 flat Instructions and page 61 of the Resident Booklet

Line 4 instructions - moved

"Any employee nontaxable compensation" moved from "Earned income does not include" to "Earned income includes"

This revision does not affect the taxpayer's tax liability.
The revised internet version is available for download.

Back to Tax Form Changes for 2005