Iowa HF962 modifies the child and dependent care credit for individual income tax, reducing income thresholds and removing the maximum income limit.

Iowa HF962 modifies the child and dependent care credit available against the individual income tax. It reduces the number of income thresholds from seven to four and removes the maximum income limit of $90,000. This change means that any taxpayer with an Iowa net income of $25,000 or more is eligible to use 50% of the federal child and dependent care credit as a refundable credit against the Iowa individual income tax. The bill applies retroactively to tax years beginning on or after January 1, 2025.

Iowa HF962 modifies the child and dependent care credit for individual income tax, reducing income thresholds and removing the maximum income limit.

Iowa HF962 modifies the child and dependent care credit available against the individual income tax. It reduces the number of income thresholds from seven to four and removes the maximum income limit of $90,000. This change means that any taxpayer with an Iowa net income of $25,000 or more is eligible to use 50% of the federal child and dependent care credit as a refundable credit against the Iowa individual income tax. The bill applies retroactively to tax years beginning on or after January 1, 2025.