Delaware offers a Child Care Credit to resident individuals, which is equal to 50% of the federal child and dependent care credit allowed for federal income tax purposes. This credit is available only on the Delaware resident return (Form PIT-RES) and cannot be claimed on the non-resident return (Form PIT-NON). The credit is computed using a worksheet provided in the instructions, where taxpayers multiply the amount from Line 11 of federal Form 2441 by 50% (.50). The resulting amount must not exceed $3,000 and should be entered on Line 31 of the Delaware return.
Key Rules and Eligibility
- Residency Requirement: Only Delaware residents may claim this credit. Non-residents filing Form PIT-NON are not eligible.
- Joint Filing Consideration: If spouses file a joint federal return but file separate or combined separate Delaware returns, the Delaware Child Care Credit must be allocated between the spouses in accordance with the worksheet provided in the Delaware Resident Income Tax Return Instructions.
- Documentation Required: A copy of federal Form 2441 must be attached to the Delaware return to support the credit claim.
- Maximum Credit Limit: The allowable Delaware Child Care Credit, as computed using the Delaware worksheet, cannot exceed $3,000. The allowable credit is entered on Line 31 of Form PIT-RES.
Important Distinction
The Child Care Credit in Delaware should not be confused with the Child Tax Credit, which is not an allowable credit on the Delaware return.
Source:
Delaware Resident Individual Income Tax Return Instructions (PIT-RES) 2025
Delaware Non-Resident Individual Income Tax Return Instructions (PIT-NON) 2025
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. For complex situations, consult a CPA or tax attorney.