Page Reviewed / Updated - Mar. 2016
These are state versions of the Federal Child and Dependent Care Credit in which the tax filer receives a credit for care expenses incurred so that they are able to work. Home care or adult day care costs are examples of work-related expenses that are eligible. Nursing home care and assisted living are examples of expenses that would not be eligible. Currently, the District of Columbia, as well as twenty-two states, offers tax credits for dependent care.
Most states simply allow tax filers to deduct a percentage, which may range from 20% to 110%, of their federal tax credit from their state tax returns. For example, if the Dependent Care Tax Credit in your state is 50% of the Federal amount and your Federal credit is the maximum $1,050, you can also deduct $525 for your state taxes. Note that many states apply a range of percentages based on your income. For example, instead of 50%, those with higher incomes might be allowed 35% of their Federal credit.
The following states have Dependent Care Credits.
States with Dependent Care Tax Credit 2015