Listed below are credits available to you on your District of Columbia return:
Credit for Taxes Paid to Another State
The District of Columbia allows taxpayers to claim a credit for individual income tax paid to other state(s) if the income taxed by that state is derived from that state and is of a kind taxed by DC.
The program will automatically calculate this credit for your Resident return if you have a Nonresident return created in your account. If you have a Part-Year return created for DC, the calculation will need to be filled in within the DC Part-Year return.
Important: If you are a statutory resident, the state in which you are domiciled gives the credit for taxes paid to DC.
DC credit not allowed for any of the following "other taxes imposed by a state":
- Corporate franchise tax
- License tax
- Excise tax
- Unincorporated business franchise tax
- Occupation tax
Alternative Fuel Credits
DC allows a AFV credit up to 50% of the costs for purchase and installation of qualified alternative fuel storage and dispensing or charging equipment per qualified AFV refueling property or privately owned residence. The AFV credit is limited to $1,000 per charging station for a private residence and $10,000 per refueling property:
- Alternative fuel vehicle (AFV) charging or fuel storage dispensing station-Private residence
- Alternative fuel vehicle (AFV) charging or fuel storage dispensing station-Public use
- Alternative fuel vehicle (AFV)-Conversion
Important: The cost of the purchase for land where the charging station or refueling will be located, the construction or purchase of any structure is not included in the equipment or labor costs. (The unused credit can be carried over for two years).
Homeowner and Renter Property Tax Credit
The real property tax credit is now based on your DC real property tax bill for tax year 2023. Do not include special assessments, interest penalties and services charges. The maximum property tax credit limit is increased from $1,250 to $1,325. Schedule H federal Adjusted Gross Income (AGI) eligibility threshold for under age 70 increases to $61,300 and for 70 and older increases to $83,700. Note: This credit can not be claimed for an exempt property owned by the government, a house of worship or a non-profit organization.
Non-Custodial Parent EITC Claim-Schedule N
DC Law also allows the same 70% of Federal EITC to those who are not allowed to claim the EITC at the federal level but who meet other DC requirements, such as a non-custodial parent who is a District resident between the ages of 18 and 30, and paying child support under a court order for a minor child.
The taxpayer must have paid the child support of at least the amount due for the year through a government sponsored support collection unit and the order must have been in effect for at least one-half of the year.
Keep Child Care Affordable Tax Credit
Credit allows allows eligible taxpayers to claim an early learning tax credit for an eligible child under the age of 4 as of 9/30/23 and payments made during the taxable year after August 31st if the eligible child meets age requirements for enrollment in Pre-K according to DC Code. The maximum credit amount is $1,115.
DC Low Income Housing Tax Credit
This is a non-refundable credit, which means it can reduce the DC tax you owe, but it will not directly result in a tax refund. If you claimed the Federal Earned Income Credit, it may be better for you to take the DC Earned Income Tax Credit instead of the DC Low Income Credit as the DC Earned Income Tax Credit is a refundable credit. You CANNOT take both of these DC Credits.
The DC Earned Income Tax Credit is figured automatically in your account. An entry here will override that calculation.
- State Section
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