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Arkansas Dependent Care and Developmental Disability Tax Credits

Arkansas state income tax credits for household and dependent care expenses that enable work, plus a separate credit for taxpayers maintaining, supporting, and caring for a child with a developmental disability in the taxpayer's home.

Arkansas allows a state household and dependent care credit tied to the federal household and dependent care credit for expenses necessary to obtain or hold gainful employment. The standard credit is 10% of the federal credit; a 20% refundable credit may apply for qualifying child care expenses at an approved childcare facility. Arkansas also provides a $500 per-tax-year credit for each child with a developmental disability when the taxpayer maintains, supports, and cares for the child in the taxpayer's home.

Questions to ask the program

These are questions to ask the program, not a verdict on your eligibility. Confirm the current rules directly with the program.

  • Does the person receiving care live in Arkansas? — Residency is usually the first thing a program checks.
  • Which tax year does this apply to, and what form claims it?
  • Does your employer already offer this, and have they told staff? — Some credits are claimed by the employer, not by you — asking is the move.

Services

Arkansas allows a state household and dependent care credit tied to the federal household and dependent care credit for expenses necessary to obtain or hold gainful employment. The standard credit is 10% of the federal credit; a 20% refundable credit may apply for qualifying child care expenses at an approved childcare facility. Arkansas also provides a $500 per-tax-year credit for each child with a developmental disability when the taxpayer maintains, supports, and cares for the child in the taxpayer's home.

How to apply

Use the official program page for application details: official program page.

  • cdctc (companion): Arkansas household and dependent care credit is tied to the federal household and dependent care credit.