Line 65
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65. CHILD AND DEPENDENT CARE CREDIT. Enter the amount from line 3 of the following worksheet.

Only taxpayers with a net income of less than $40,000 are eligible for this credit. If you are married, your net income and the net income of your spouse must be combined to determine if you qualify, even if your spouse does not file an Iowa return.

This credit is refundable. Even though you may not be required to file an Iowa return, you may wish to do so in order to claim a refund for this credit. You may be eligible for this credit even though you were unable to take it on your Federal return.

Use the following worksheet and percentage table to calculate the Child and Dependent Care Credit. The percentages are based on your Iowa net income on line 26. You must attach a copy of your completed Federal form 2441 or Schedule 2 of Federal 1040A.

MARRIED SEPARATE FILERS: In computing the credit, the combined net income of both spouses must be used. The Child Care Credit must be divided between husband and wife in the ratio of each spouse’s net income to their combined net income.

(Examples of how to prorate)

 

WORKSHEET

1. Enter the amount from line 9 of Federal form 2441 or line 9 of Schedule 2 of Federal form 1040A. Note: Use the Child Care Credit prior to any Federal Alternative Minimum Tax calculation.
1.
2. If total of line 26 of the IA1040, columns A and B, is:
Less than $10,000 enter 75%
$10,000 - $19,999 enter 65%
$20,000 - $24,999 enter 55%
$25,000 - $34,999 enter 50%
$35,000 - $39,999 enter 40%
$40,000 and over: not eligible for credit
Enter the appropriate percent here
2.
3. Multiply line 1 by percentage on line 2.
Enter the result here and on line 65 of the IA1040
3.

 

NONRESIDENTS AND PART-YEAR RESIDENTS:

This credit must be adjusted using the following steps:

Step 1. Divide Iowa net income (line 26, IA 126) by all-source net income of you and spouse (line 26, IA1040)

Step 2. Multiply Step 1 above by the amount of credit calculated in the worksheet.

Step 3. Enter this result on line 65 of the IA 1040.

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Go to Line 66