A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Plain English Breakdown

The official source does not provide details on how the credit amount varies with income beyond a range from $200 to $1,000.

Child and Dependent Care Tax Credit Bill

This bill creates a refundable tax credit for taxpayers with adjusted gross income not more than 250% of the federal poverty level to help cover child or dependent care expenses.

What This Bill Does

• Creates a new refundable tax credit for taxpayers whose adjusted gross income is not more than 250% of the federal poverty level.
• The credit amount ranges from $200 to $1,000 depending on how much the taxpayer's income exceeds the federal poverty level.
• The credit can also cover up to 20% of employment-related expenses for child or dependent care.

Who It Names or Affects

• Taxpayers whose adjusted gross income is not more than 250% of the federal poverty level and need help paying for childcare to work.

Terms To Know

Refundable tax credit

A type of tax credit that can give you money back even if it's more than what you owe in taxes.

Adjusted gross income (AGI)

The total income you earn minus specific deductions, which is used to calculate your taxable income.

Limits and Unknowns

• It only helps taxpayers with incomes up to a certain level.
• The bill does not specify what happens if the credit amount exceeds the tax owed by the taxpayer.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Child and dependent care tax credit.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Child and dependent care tax credit.

Provides a refundable child and dependent care tax credit to taxpayers whose adjusted gross income for the taxable year is not more than 250% of the federal poverty level. Provides that the credit is equal to the lesser of: (1) an amount ranging from $200 to $1,000, depending on the extent to which the taxpayer's adjusted gross income exceeds the federal poverty level; or (2) 20% of the taxpayer's employment related expenses.