Example 2

Proof of Credit Example Table 2 Family’s federal adjusted gross income $30,000 Refundable or nonrefundable tax credit Nonrefundable State child care credit amount $50 Qualified dependents under age six that attended a quality rated child care facility 2 Quality rating of the child care facility for first child 4* Percentage of state child care credit allowed for first child 150% School readiness child care expense tax credit for first child ($50 x 150%) $75 Quality rating of the child care facility for second child 3* Percentage of state child care credit allowed for second child 100% School readiness child care expense tax credit for second child ($50 x 100%) $50 Total school readiness child care expense tax credit ($75 + $50) $125

The $125 school readiness child care expense credit can be claimed in addition to the $50 regular child care credit and can be applied against the taxpayer’s liability with any excess credit carried forward for up to five years.