CA Dependent Care
(01/01/12 – 03/31/12)
Dependent care expenses billed for the care of a child or incapacitated adult are allowable when all of the following apply:
The expense is required to ensure care is provided for the dependent.
The expense is required to allow the participant to continue to work.
The wage earner is billed for the expense.
The person receiving the care is included in the same CA or CA Supportive Services budgetary unit as the wage earner.
Dependent care expenses include payments to a provider caring for an incapacitated adult in the home. Incapacity is determined by a statement from a medically qualified source(g).
Key dependent care expenses for a DI participant next to the eligible participant who is billed or pays the expense. Then AZTECS will allow the deduction.
For the maximum dependent care deduction, see Dependent Care Deduction for CA.