The Kansas Child Day Care Assistance Credit is available to qualifying taxpayers that provide, purchase, locate, or provide access to child day care services primarily for the dependent children of their employees. Qualifying assistance may include establishing and operating a child day care facility, paying for child day care services, or providing access to available child care services as permitted under Kansas law.
Eligibility and Credit Amounts
- Initial Year Credit: For a taxpayer that establishes and operates a qualifying child day care facility, the credit is generally equal to 50% of qualifying expenditures incurred during the year the facility is established. The credit is limited to the maximum amount allowed under Kansas law, including the applicable $45,000 limitation for the initial year.
- Subsequent Years Credit: For taxable years after the initial year, the credit is generally equal to 30% of qualifying expenditures for providing child day care services, reduced by any applicable amounts received for use of the facility. The allowable credit is subject to the limitations provided under Kansas law.
- Additional Qualifying Activities: The credit may also apply to certain qualified payments made by employers to provide employees with access to child day care services. Taxpayers should refer to the Schedule K-56 instructions for the applicable credit calculation, limitations, and qualifying requirements for the specific type of assistance provided.
Reporting Requirements
Taxpayers claiming this credit must complete the applicable lines of Schedule K-56 and provide the information required to calculate the allowable credit, including qualifying expenditures and any other information requested on the schedule.
How to Claim the Credit
- Complete Schedule K-56 and attach it to your Kansas income tax return.
- Enter the required credit information and complete all applicable sections of the schedule to calculate the allowable credit.
- Retain supporting documentation to substantiate the qualifying expenditures and the credit claimed.
Source:
SCHEDULE K-56
Disclaimer: Always verify details with the official Kansas Department of Revenue forms and instructions. Tax laws and filing requirements may change annually. For complex situations, consult a CPA or tax professional.