Utah parents and certain other caregivers who provide full-time, at-home care for infants may be eligible for a non-refundable tax credit.
A $100 tax credit is available for the full-time care of each qualifying infant by an at-home parent. An "at-home parent" includes:
- Biological mother or father,
- Stepmother or stepfather,
- Adoptive parents,
- Foster parents,
- Legal guardian, or
- Individuals in whose home the child is placed by a child placing agency for the purpose of legal adoption.
To qualify for the credit, all of the following criteria must be met:
- The child must be 12 months old or younger on the last day of the tax year for which the credit is claimed.
- The at-home parent must provide full-time care in the at-home parent's residence.
- The child must be claimed as a dependent on the at-home parent's tax return.
- The sum of the at-home parent's total wages, tips and compensation listed on federal W-2 forms and the gross income on federal Schedule C, Profit or Loss from a Business, line 7, or Schedule C-EZ, Net Profit from Business, line 1, must be $3,000 or less for the taxable year.
- The federal adjusted gross income of all taxpayers filing the individual income tax return is $50,000 or less.
The tax credit is nonrefundable, meaning any amount of the credit that exceeds the tax due will not be refunded to the taxpayer.
Any credit in excess of the tax due will not be refunded, and may not be carried back or carried forward.
There is no form for this credit. Keep all related documents with your tax records.
The credit is claimed by entering the allowable credit (maximum $100 per eligible child) on your Utah TC-40A, Part 4, using code 01.