The Child Day Care Credit may not exceed $1,200, or $600 for an individual filing married filing separate, with a maximum of $480 per child is allowable.
Married individuals maintaining a household for one or more qualifying dependents, that are filing separate, may each claim only half the credit allowed on a joint return.
To qualify for the credit, all of the following must be true:
- You have a Modified Gross Income of $30,160 or less.
- You were a New Mexico resident during any part of the tax year.
- You provided over half the cost of maintaining a household for one or more qualifying dependents for the part of the tax year for which the rebate is claimed (either separately or jointly with a spouse).
- You were gainfully employed for that part of the tax year for which you are claiming the credit.
- You did not receive public assistance under the TANF, the New Mexico Works Act or similar programs during the part of the tax year for which you are claiming the credit.
- You were not reimbursed or compensated for the amount of child day care expense for which you are claiming the credit.
- You have not been reimbursed or compensated for child day care expenses, like those paid with pre-tax dollars under cafeteria and similar benefit plans.
Note: The Department will verify whether or not you are receiving public assistance.
What are the residency requirements?
You must qualify as a first-year, full year, or part-year resident of New Mexico to claim the Child Day Care Credit.
What are the Caregiver Qualifications?
You cannot claim a credit for amounts paid to a caregiver unless all the following are true for the caregiver:
- The caregiver was at least 18 years old when provided the care.
- The caregiver provided the day care service in New Mexico.
- The caregiver provided day care for less than 24 hours daily.
- You or your spouse could not claim the caregiver as a dependent for federal income tax purposes.
- State Section
- Child Day Care Credit
For additional information pertaining to the Child Day Care Credit, please see Form PIT-RC.