Arkansas allows individuals with a dependent child placed in an approved child care facility to claim a credit on the tax return. This credit is equal to 20% of the Care Credit claimed on the federal return.
The child care center must be approved by the Arkansas Department of Education as having an appropriate early childhood program as defined by Arkansas law. Individuals will be required to enter the certification number and attach Federal Form 2441 (Child and Dependent Care Expenses) and Certification Form AR1000EC.
*Note: You must contact your child care facility for Form AR1000EC. At this time, Arkansas does not allow your Arkansas return to be filed electronically if you are claiming this credit. You must print your Arkansas and mail to the state for filing.
*Note: If you are claiming the Early Childhood Program Credit on Line 41, the total amounts from Line 33 and Line 41 cannot exceed (20%) of the amount allowed on Federal Form 2441.
This credit is automatically calculated in the account when qualifying Child Care Credit information is entered in the Federal Section.