Utah At Home Parent Credit

Utah families face high costs. They pay for housing, food, and childcare. They are also taxed twice on education spending when they choose to homeschool their children. The UHEA supports efforts to reduce the double taxation of homeschooled families.

The Utah At-Home Parent Credit is a nonrefundable tax credit worth $100 per qualifying child. This means it can directly reduce your state income tax liability, but it won’t result in a tax refund if the credit amount exceeds your tax owed. The Utah at-home parent credit is a nonrefundable tax credit that can be claimed by taxpayers who have children age 12 months or younger. The credit equals 6% of the federal standard or itemized deduction, less state taxes paid. This credit can be used to pay for childcare expenses, medical bills, educational costs, and more. The at-home parent credit is a great way to help families with young children.

As lawmakers prepare for the 2024 legislative session, they should consider meaningful changes to expand Utah’s narrowly tailored child tax credit (CTC) so that more families can benefit from this critical community support. Families need all the financial support they can get to give their kids a strong start in life and set them up for success.

Utah At Home Parent Credit Eligibility
Utah At Home Parent Credit 1

Utah At Home Parent Credit Eligibility

To qualify for Utah At Home Parent Credit, the parent must meet certain income and other requirements. Not every Utah resident with a young child can claim this credit. Here are the specific eligibility requirements you need to meet:

  • Child’s Age: The child must be 12 months old or younger on the last day of the tax year you’re filing for.
  • At-Home Care: One parent in the household must be the primary caregiver, providing full-time, at-home care for the child within your residence.
  • Income Limits: Your federal adjusted gross income (combined income of all taxpayers filing together) must be $50,000 or less for the tax year.
  • Dependent: The child must be claimed as a dependent on the tax return of the at-home parent.
  • At-Home Parent’s Income: The at-home parent’s total wages, tips, and compensation for the tax year must be $3,000 or less (combined income from W-2s and Schedule C/C-EZ).

The Utah At-Home Parent Credit is a valuable tax benefit for qualifying families. By understanding the eligibility requirements, claiming procedures, and other considerations, Utah residents can make informed decisions about childcare and potentially reduce their tax burden. Remember, consulting with a tax professional can be beneficial if you have any questions or complexities regarding your specific situation.

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