Resource

State Child Care and Dependent Care Tax Provisions, Tax Year 2016

Fact Sheets

Child and dependent care expenses can take a huge bite out of families’ budgets. With few increases in state or federal funding, direct child care assistance is not available to every family that needs help paying for child and dependent care.

The federal Child and Dependent Care Tax Credit and similar state tax provisions can help eligible families offset their child care expenses. These tax provisions can lower the income taxes that families must pay and, in some cases, give cash refunds to families whose incomes are too low to owe taxes.

Twenty-six states (including the District of Columbia) have child and dependent care tax provisions, most of which are based in some way on the federal credit. Twelve of those states offer refundable credits (listed in bold).

State Tax Provisions

Maximum Value

Arkansas Child Care Tax Credit

$420

Arkansas Early Childhood Program Tax Credit

$420

California Tax Credit for Child and Dependent Care Expenses

$1,050

Colorado Child Care Tax Credit

$1,050

Colorado Low-Income Child Care Expenses Credit

$1,000

Delaware Child Care Tax Credit

$1,050

The District of Columbia Tax Credit for Child and Dependent Care Expenses

$672

Georgia Tax Credit for Child and Dependent Care Expenses

$630

Hawaii Tax Credit for Child and Dependent Care Expenses

$1,200

Idaho Tax Deduction for Child and Dependent Care Expenses

$444

Iowa Child and Dependent Care Tax Credit

$1,575

Kentucky Child and Dependent Care Tax Credit

$420

Louisiana Child Care Tax Credit

$1,050

Louisiana Child Care Expense Tax Credit

$2,100

Louisiana Tax Credit for Certain Disabled Dependents

$2,100

Maine Child Care Tax Credit

$1,050

Maryland Tax Credit for Child and Dependent Care Expenses

$683

Maryland Tax Deduction for Child and Dependent Care Expenses

$345

Massachusetts Tax Deduction for Child and Dependent Care Expenses

$562

Minnesota Child and Dependent Care Tax Credit

$1,440

Montana Child and Dependent Care Expense Tax Deduction

$192

Nebraska Tax Credit for Child and Dependent Care Expenses

$2,100

New Mexico Child Day Care Tax Credit

$960 for two, $1,200 for three or more children or dependents

New York State Child and Dependent Care Tax Credit

$2,310

Ohio Tax Credit for Child and Dependent Care Services

$2,100

Oklahoma Child Care Tax Credit

$420

Oregon Working Families Child and Dependent Credit

$18,000

Rhode Island Tax Credit for Child and Dependent Care Expenses

$525

South Carolina Tax Credit for Child and Dependent Care Expenses

$420

Vermont Tax Credit for Child and Dependent Care Expenses

$504

Vermont Low-Income Child and Dependent Care Tax Credit

$1,050

Virginia Tax Deduction for Child and Dependent Care Expenses

$345

 

For more information about state child and dependent care tax provisions, see NWLC’s report, Making Care Less Taxing. If you are interested in introducing or improving a child and dependent care tax provision in your state, or the federal Child and Dependent Care Tax Credit on which many state credits are based, contact Sarah Hassmer at shassmer@nwlc.org.

Published On: November 14, 2017Associated Issues: Child Care Tax StrategiesTax & Budget

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