Child Care/Child Tax Credit in Oklahoma
The Oklahoma Child Care/Child Tax Credit is designed to provide tax relief to eligible taxpayers with qualifying dependents. This credit is based on a percentage of the federal child tax credit and is available to taxpayers who meet specific income and filing requirements.
Eligibility and Credit Amount
- The credit equals 5% of the child tax credit allowed by the Internal Revenue Code (IRC), including both the nonrefundable child tax credit and the refundable additional child tax credit.
- Eligibility is limited to taxpayers whose Federal Adjusted Gross Income (AGI) is $100,000 or less. If your Federal AGI exceeds $100,000, no credit is allowed.
- Taxpayers must provide a copy of their federal tax return and, if applicable, the Federal Child Care Credit schedule to claim this credit.
How to Claim the Credit
- Complete Form 511-NR (Oklahoma Individual Income Tax Return for Nonresidents and Part-Year Residents) and enter the credit amount on Line 15.
- If your AGI from all sources (Form 511-NR, Line 7) is less than your Federal AGI (Form 511-NR, line 2), you must complete Schedule 511-NR-E to determine the correct amount for Line 15.
- For part-year and nonresident taxpayers, the credit is applied before calculating the base tax (Line 12) and prorated for Line 13.
Important Notes
- The credit is not entered on Line 14 of Form 511-NR. It is subtracted from the base tax before proration.
- Allocate any child care/child tax credit or sales tax relief credit claimed for a dependent to the spouse who has been allocated the dependent’s exemption.
Source:
Form 511-NR (Oklahoma Individual Income Tax Return for Nonresidents and Part-Year Residents)
Form OW-8-P-SUP-I (Instructions for Part-Year and Nonresident Taxpayers)
Form 505 (Oklahoma Individual Income Tax Return - Instructions)
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing.