Child and Dependent Care Tax Credit in Delaware

In Delaware, the Child and Dependent Care Tax Credit is designed to help families offset the costs of child care for dependents while they work or look for work. Here’s an overview of the credit:

1. Eligibility: To qualify for the Delaware Child and Dependent Care Tax Credit, you must meet the following criteria:

• You must have incurred expenses for the care of a dependent child under the age of 13, or a spouse or dependent who is unable to care for themselves.
• The care must allow you to work or actively seek employment.

2. Credit Amount: The amount of the Delaware credit is calculated based on a percentage of the federal child and dependent care credit. This percentage is typically lower than the federal rate. The credit ranges from 20% to 50% of the qualifying care expenses, depending on the taxpayer’s adjusted gross income.

3. Qualifying Expenses: The expenses that qualify for the credit include payments made to caregivers, daycare centers, and similar services while you and your spouse (if applicable) are working.

4. Income Limits: While there are no specific income limits for claiming the Delaware credit, your adjusted gross income may affect the percentage of expenses you can claim.

5. How to Claim: To claim the Delaware Child and Dependent Care Tax Credit, you need to complete the relevant forms while filing your state tax return. This often involves filling out Schedule CR to calculate the credit based on your federal Child and Dependent Care Tax Credit.

Always review the latest guidelines from the Delaware Division of Revenue or consult a tax professional for the most current information and individual advice tailored to your situation.