Your State May Have an Additional Child Care Credit

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:

StateForm NameMax CreditRefundable?Additional information
ArkansasArkansas Child Care Credit$420

Arkansas
Arkansas Early Childhood Program Credit$420YesIn 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$1,050Only child care expenses may be claimed for this credit

Colorado

Colorado Child Care Expense Tax Credit
$1,050Yes

Colorado

Colorado Low-Income Child Care Expenses Credit
$1,050Yes

Delaware
Delaware Child Care Credit$1,050Child 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$1,045per eligible child

Georgia
Georgia Child and Dependent Care Expense Credit$630
HawaiiHawaii Credit for Child and Dependent Care Expenses$1,200
IdahoIdaho Tax Subtraction for Child and Dependent Care Expenses$360
IowaIowa Child and Dependent Care Credit$1,575YesEligible 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.
KansasKansas Credit for Child and Dependent Care$525
KentuckyKentucky Child and Dependent Care Credit$420
LouisianaLouisiana Child Care Credit: (R) $1,050 ($1,050YesEligible families can claim both of the Louisiana credits.
LouisianaLouisiana Child Care Expense Credit$2,100YesOnly 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
MaineMaine Child Care Credit$1,050YesIn 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
MaineMaine Adult Dependent Care Credit$525YesUp to $500 of this credit may be refundable
MarylandMaryland Credit for Child and Dependent Care Expenses$672YesThe 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
MarylandMaryland Child and Dependent Care Expenses Subtraction$345
MassachusetsMassachusetts Dependent Care Tax Credit / Household Dependent Tax Credit$480
MinnesotaMinnesota Child and Dependent Care Credit$2,100Yes
MontanaMontana 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.)
NebraskaNebraska Credit for Child and Dependent Care Expenses$2,100Yes
New JerseyNew Jersey Child and Dependent Care Credit$2,100Yes
New MexicoNew Mexico Child Day Care Credit$920Yes$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 YorkNew York Child and Dependent Care Credit$2,100Yes
OhioOhio Child Care and Dependent Care Credit$2,100
OklahomaOklahoma Child Care Tax Credit$420Eligible 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
OregonOregon Working Family Household and Dependent Care Credit: (R) (t.)$18,000YesOnly care expenses for children under age 13 or disabled spouses or dependents of any age may be claimed for this credit
Rhode IslandRhode Island Credit for Child and Dependent Care Expenses $525
South CarolinaSouth Carolina Credit for Child and Dependent Care$420
VermontVermont Credit for Child and Dependent Care Expenses:$504YesEligible 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
VermontVermont Low-Income Child and Dependent Care Credit$1,050YesOnly 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
VirginiaVirginia Deduction of Child and Dependent Care Expenses$345
WisconsinWisconsin Additional Child and Dependent Care Tax Credit$1,050

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