If an individual has a qualifying family member for whom the individual paid qualified care expenses, the individual may be eligible for an income tax credit equal to a percentage of the qualified care expense payments.
Qualifications
Qualified care expenses mean adult day care, home health agency services, personal care attendant services, homemaker services, respite care, companionship services, and, to the extent they do not reduce your federal taxable income, medical expenses otherwise deductible for federal income tax purposes. For an expense to qualify, the qualifying service must be provided by an organization or person unrelated to the individual or the qualifying family member, and the expense must not be compensated for by insurance or a federal or state assistance program.
Credit Amounts
The credit percentage ranges from 20% to 30% and is dependent on the amount of the individual’s federal taxable income. The amount of the credit is reduced by the amount of the individual’s federal taxable income in excess of $50,000 ($70,000 if married filing jointly). The maximum credit allowed is $2,000 per qualifying family member, not to exceed $4,000.
Application Process
Not Applicable.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Schedule ND-1FA, Family Member Care Credit |
| C Corporation | Not Applicable |
| S Corporation | Not Applicable |
| Partnership | Not Applicable |
| Fiduciary | Not Applicable |