Iowa Child and Dependent Care, EITC, and Senior/Disabled Tax Relief¶
Iowa refundable tax credits and property-tax relief that may apply to caregiver households, including the Iowa Child and Dependent Care Credit, Early Childhood Development Credit, Iowa Earned Income Tax Credit, exemption credits for dependents and older or blind taxpayers, and property-tax or rent relief for older adults and people with disabilities.
Iowa allows either the refundable Child and Dependent Care Credit or the refundable Early Childhood Development Credit. For tax year 2025, taxpayers with Iowa taxable income under $90,000 may claim one of these credits. The Child and Dependent Care Credit is calculated as a percentage of the federal Form 2441 amount, ranging from 75% for Iowa taxable income under $10,000 down to 30% for income from $40,000 through $89,999. The Early Childhood Development Credit equals 25% of the first $1,000 of qualifying expenses for each dependent age three through five. Iowa also provides a refundable EITC equal to 15% of the federal EITC, $40 dependent exemption credits, additional personal credits for taxpayers or spouses who are 65 or older or blind, and property-tax or rent relief for older adults and totally disabled residents who meet low-income requirements.