No, this is not the case.  There is no maximum cap on child care expenses.  What you are referring to is the "child tax credit."  The parent who actually pays for child care for the child is allowed to claim a child care tax credit on their income taxes every year.  The amount is based on the income of that parent.  There are both federal and state (KS) credits.

So looking at your case, if child care costs $160/mo and the income is $35k, the percentage refund would be 24% of the child care costs up to a maximum of $60/mo for one child, or $120/mo for more than one child.  If I recall correctly, the KS refund would take 25% of the federal amount, so multiply the federal amount by 1.25.  So 160 * 24% is 38.40, then x1.25 is $48/mo.  This amount would be refunded to the paying parent at the end of the year, so it is rolled off of the child care expenses on line D5 of the child support worksheet.

If you're using the calculator found here, there is actually a convenient tab called "Child_Tax" which shows you a breakdown of how the value is calculated.  This is something the child support committee should look at implementing in the child support guidelines/worksheet as well.  I think a form similar to this should be filed with the worksheet, and would help eliminate questions, but currently it is not required.

Hope that helps.