Yes, Oklahoma offers a state-level tax credit that is based on either the federal child tax credit or the federal Child and Dependent Care Credit.
Oklahoma's Family Tax Credits Explained
In Oklahoma, eligible households may claim a refundable tax credit designed to provide financial relief for families. This credit is tied to federal tax benefits, allowing some taxpayers to receive a percentage of what they qualify for on their federal return at the state level.
Understanding the Credit Options
Oklahoma's state credit provides flexibility, allowing qualifying families to claim the greater of two options:
- 5% of the Federal Child Tax Credit: This option is for families who qualify for the federal Child Tax Credit, providing a state-level benefit equivalent to 5% of that amount.
- 20% of the Federal Child and Dependent Care Credit: Alternatively, families who incur expenses for the care of a qualifying child or dependent may claim 20% of the amount they receive through the federal Child and Dependent Care Credit.
Taxpayers will receive the higher of these two calculated amounts, maximizing their potential state tax benefit.
Eligibility Requirements
To qualify for these Oklahoma state tax credits, taxpayers must meet specific income thresholds:
- Adjusted Gross Income (AGI) Limit: For married couples filing jointly, their federal adjusted gross income (AGI) must not exceed $100,000. While the reference specifically mentions this limit for joint filers, other filing statuses may have different (or no) specific state-level AGI limits for these credits not detailed here.
Key Details at a Glance
For a quick summary of Oklahoma's child-related tax credits, refer to the table below:
| Credit Type | Percentage of Federal Credit | AGI Limit (Married Filing Jointly) |
|---|---|---|
| State Child Tax Credit | Up to 5% | $100,000 |
| State Child and Dependent Care Credit | Up to 20% | $100,000 |
Taxpayers receive whichever of the two calculated amounts is greater.
Where to Find More Information
For comprehensive details on state-specific tax credits, including Oklahoma's provisions, it's advisable to consult official state tax resources or reputable financial news outlets. One such source that compiles information on state tax credits is Kiplinger, which provides insights into various states offering such benefits in 2024. You can find more information on States That Offer a Child Tax Credit in 2024.
