Category: New Mexico
New Mexico Child Day Care Credit
The Child Day Care Credit may not exceed $1,200 or, for a married taxpayer filing a separate return, $600.
Married individuals maintaining a household for one or more qualifying dependents, but filing separate returns for a tax year, 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 resident of New Mexico during 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 were not a recipient of public assistance under the TANF, the New Mexico Works Act or similar program, during that part of the tax year for which you are claiming the credit.
- You have not been reimbursed or compensated for the amount of child day care expense for which you are claiming the credit.
Reimbursed or compensated child day car expenses, like those paid with pre-tax dollars under cafeteria and similar benefit plans, are also ineligible.
Note: The Department checks with appropriate state agencies to verify whether a claimant is receiving public assistance.
You cannot claim a credit for amounts paid to a caregiver unless all the following are true for the caregiver:
- If an individual, 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.
- Your or your spouse could not claim the caregiver as a dependent for federal income tax purposes.
For additional information pertaining to the Child Day Care Credit, please see Form PIT-RC.