As most parents will tell you childcare is expensive and leaving your child is STRESSFUL if you cannot find or afford a caregiver or school you trust with your precious child. Unfortunately, according to care.com, “More than half — 59% — of parents say they’re more concerned about childcare costs now than in years prior.”
In fact, according to a 2022 CNBC report childcare now costs an average of $10,000 per year per child. That $10,000 price tag represented more than 10% of the median income for a married couple, and more than 35% percent of the median income for a single parent in 2022.
While childcare credits are not enough to completely resolve the crisis that is childcare in this country. Credit available at the federal and state level can help your family if you know to apply for them when you file your taxes. Most tax software will at least ask you enough questions to make sure you get the federal childcare credit if your family qualified but you need to review your return to be certain. Also, many softwares reviewed are hit of miss when it comes to finding all of the state credits you should be getting. So you need to be proactive and make sure you get the credits you are entitled to.
In case you are not already aware, the federal credit allows families to claim up to 35 percent of their work-related child and dependent care expenses up to $6000 as a non-refundable tax credit. The credit covers expenses for child or dependent care that enable the parent(s) to work or look for work. Keep in mind that the federal credit is currently non-refundable. So, if you have no tax liability you will not get a refund of the credit to you in cash.
Many states have based their child care credits on the federal credit. However, some states do have refundable credits. In an effort to help inform you our reader we created the chart below to show what each state currently has in the way of a child care credit.
STATE TAX FORM NAME & MAXIMUM CREDIT VALUE
Refundable or partially refundable credits are noted in the form below:
| State | Form Name | Max Credit | Refundable? | Additional information |
| Arkansas | Arkansas Child Care Credit | $420 | ||
Arkansas | Arkansas Early Childhood Program Credit | $420 | Yes | In order for a family to claim the refundable portion of this credit, the care expenses must be incurred for children age 5 and under in an approved early childhood program.) |
California | California Child and Dependent Care Expenses Credit | $1,050 | Only child care expenses may be claimed for this credit | |
Colorado | Colorado Child Care Expense Tax Credit | $1,050 | Yes | |
Colorado | Colorado Low-Income Child Care Expenses Credit | $1,050 | Yes | |
Delaware | Delaware Child Care Credit | $1,050 | Child and dependent care expenses may be claimed for this tax credit | |
District of Columbia | District of Columbia Credit for Child and Dependent Care Expenses | $672 | ||
District of Columbia | District of Columbia Keep Child Care Affordable Tax Credit | $1,045 | per eligible child | |
Georgia | Georgia Child and Dependent Care Expense Credit | $630 | ||
| Hawaii | Hawaii Credit for Child and Dependent Care Expenses | $1,200 | ||
| Idaho | Idaho Tax Subtraction for Child and Dependent Care Expenses | $360 | ||
| Iowa | Iowa Child and Dependent Care Credit | $1,575 | Yes | Eligible families may claim the higher of the child and dependent care tax provision or the state’s Early Childhood Development Tax Credit, which is worth up to $250 per eligible child, but not both. |
| Kansas | Kansas Credit for Child and Dependent Care | $525 | ||
| Kentucky | Kentucky Child and Dependent Care Credit | $420 | ||
| Louisiana | Louisiana Child Care Credit: (R) $1,050 ( | $1,050 | Yes | Eligible families can claim both of the Louisiana credits. |
| Louisiana | Louisiana Child Care Expense Credit | $2,100 | Yes | Only care expenses for children aged 5 and under enrolled in child care programs rated two stars or higher on Louisiana’s Quality Start rating system may be claimed for this credit Louisiana Note 1: A childcare worker’s Child Care Teacher level is determined by their educational level attained through the Louisiana Pathways Child Care Career Development System. The Pathways Louisiana Note 2: Also amounts for the Louisiana credit are adjusted annually for inflation. These numbers for the 2022 Tax Year |
| Maine | Maine Child Care Credit | $1,050 | Yes | In order for a family to claim the maximum value of this credit, the expenses must be incurred at nationally accredited child care sites approved by the Maine Department of Health and Human Services. Up to $500 of the Child Care Credit is refundable |
| Maine | Maine Adult Dependent Care Credit | $525 | Yes | Up to $500 of this credit may be refundable |
| Maryland | Maryland Credit for Child and Dependent Care Expenses | $672 | Yes | The credit is refundable for families with an Adjusted Gross Income of $52,100 or less for individuals or $78,150* or less for married couples filing jointly. Eligible families may claim both Maryland child and dependent care tax provisions |
| Maryland | Maryland Child and Dependent Care Expenses Subtraction | $345 | ||
| Massachusets | Massachusetts Dependent Care Tax Credit / Household Dependent Tax Credit | $480 | ||
| Minnesota | Minnesota Child and Dependent Care Credit | $2,100 | Yes | |
| Montana | Montana Child and Dependent Care Expense Deduction | $180-$192 | $180 for 2 children or dependents, $192 for 3 or more (Only care expenses for children under age 15 may be claimed for this credit.) | |
| Nebraska | Nebraska Credit for Child and Dependent Care Expenses | $2,100 | Yes | |
| New Jersey | New Jersey Child and Dependent Care Credit | $2,100 | Yes | |
| New Mexico | New Mexico Child Day Care Credit | $920 | Yes | $920 for 2 children or dependents, $1,200 for 3 or more(Only care expenses for children under age 15 may be claimed for this credit. |
| New York | New York Child and Dependent Care Credit | $2,100 | Yes | |
| Ohio | Ohio Child Care and Dependent Care Credit | $2,100 | ||
| Oklahoma | Oklahoma Child Care Tax Credit | $420 | Eligible families may claim the higher of the child and dependent care tax provision or a credit worth 5% of the federal child tax credit, but not both | |
| Oregon | Oregon Working Family Household and Dependent Care Credit: (R) (t.) | $18,000 | Yes | Only care expenses for children under age 13 or disabled spouses or dependents of any age may be claimed for this credit |
| Rhode Island | Rhode Island Credit for Child and Dependent Care Expenses | $525 | ||
| South Carolina | South Carolina Credit for Child and Dependent Care | $420 | ||
| Vermont | Vermont Credit for Child and Dependent Care Expenses: | $504 | Yes | Eligible families may claim either the Vermont Tax Credit for Child and Dependent Care Expenses or the Vermont Low-Income Child and Dependent Care Tax Credit, but not both |
| Vermont | Vermont Low-Income Child and Dependent Care Credit | $1,050 | Yes | Only expenses incurred in child care facilities that are either nationally accredited or rated three or more stars on Vermont’s STARS quality rating system may be claimed for this credit |
| Virginia | Virginia Deduction of Child and Dependent Care Expenses | $345 | ||
| Wisconsin | Wisconsin Additional Child and Dependent Care Tax Credit | $1,050 |
