The Child Care/Child Tax Credit in Oklahoma is available to taxpayers who qualify for either the federal credit for child care expenses or the federal child tax credit. This credit is claimed on Oklahoma Form 511, specifically on line 15, and may require completing Schedule 511-F if your Oklahoma adjusted gross income (AGI) is less than your federal AGI.
Eligibility and Calculation
If your Federal Adjusted Gross Income is $100,000 or less and you are allowed either a
- credit for child care expenses or
- the child tax credit on your federal return
You are allowed a credit against your Oklahoma tax. Your Oklahoma credit is the greater of:
- 20% of the federal child and dependent care credit allowed under the Internal Revenue Code, or
- 5% of the federal child tax credit allowed under the Internal Revenue Code. This includes both the nonrefundable child tax credit and the refundable additional child tax credit.
If your Oklahoma AGI is less than your federal AGI, the Oklahoma credit must be prorated based on the ratio of Oklahoma AGI to federal AGI. Schedule 511-F is used to calculate the allowable Oklahoma credit.
If your federal AGI is greater than $100,000, no Oklahoma Child Care/Child Tax Credit is allowed.
How to Claim
- Complete the applicable AGI information on Form 511 and use Schedule 511-F when required to calculate the allowable Oklahoma credit.
- If Oklahoma AGI < Federal AGI, complete Schedule 511-F (instructions on page 25 of the Form 511 packet).
- Schedule 511-F calculates the credit by:
- Entering the federal child and dependent care credit and multiplying it by 20%.
- Entering the federal child tax credit, including the child tax credit and additional child tax credit, and multiplying it by 5%.
- Using the larger of those two amounts.
- Prorating the larger amount based on the ratio of Oklahoma AGI to federal AGI when required.
- Enter the calculated credit amount on Form 511, line 15.
- A copy of the federal return and, if applicable, the federal child care credit schedule must be provided.
Source:
Form 511 - Schedule 511-F: Child Care/Child Tax Credit (Oklahoma Department of Revenue)
Disclaimer: Always verify details with the most current Federal and State Department of Revenue forms and instructions. For complex situations, consult a CPA or tax attorney.