California Question - What is the FTB searching for?

[BulldogTom]

I am finishing up my CPE for the year and came across something I did not notice. The FTB is asking for all sources of non taxable income on the Child and dependent Care Credit form (3805 or something like that). So I went into the software, and there is a tab for those items to be included. Funny thing is, no matter how much non-taxable income I put in (I went to 250K of child support), it did not affect the credit. And they do not appear anywhere on the form. I went through the instructions, and while the instructions call for the information, there is no place where those amounts are mentioned as a qualification for the credit.

What is the FTB after? Are they just being "big brother"? Is this just a free audit item that will give FTB the right to deny based on incomplete information?

I don't get what the FTB is searching for.

Tom

Hollister, CA

[jainen]

>>what the FTB is searching for<<

I guess they are looking for fraud. Same reason they require provider's phone number, which is also not on the federal form. In California this is a refundable credit so it can be claimed with no taxable AGI. But the taxpayer must at least report sufficient funds to maintain a household, one of the key requirements for a qualifying child.

[Tax Prep by Deb]

That may have been true for 2010 but for 2011 it was no longer a refundable credit.

Deb