Oregon Child Care Credits Eliminated in 2016

Refundable

The refundable credit, also called the Working Family Credit, is only available to those units with StateFilingStatus equal to head-of-household or joint.

If a unit filing status is head-of-household, then the head must either be working (i.e., the sum of the variables specified by the EarnedIncome program rule are greater than 0) or be in school (i.e., CPS variable InSchoolFullOrPartTime is not equal to zero) to be eligible for the credit. The earned income of the unit head must be at least as much as is specified by the ChildCareCreditWFEarnedIncLimit_OR program rule, and the sum of Interest, DividendsEstatesOrTrusts and CapitalGains must be below the amount specified by the ChildCareCreditWFInvestIncLimit_OR program rule. Joint filing units are subject to the same limits that apply to the combined income of both the head and spouse.

To calculate the credit, determine the bracket by comparing FedAGI with the values entered in the appropriate ChildCareCreditWFUnitSize..._OR rule. The credit is then equal to the corresponding rate in ChildCareCreditWFRates_OR times ChildCareExpense. This value is then stored in PotentialRefChildCareCredit.

Non-Refundable

Units are eligible for this credit if FedChildCareCredit is greater than zero.

To calculate the credit, first determine the bracket by comparing FedTaxableIncome with the values in ChildCareCreditNonrefundableBrackets_OR. The credit is then equal to the corresponding rate given in ChlidCareCreditNonrefundableRates_OR times ChildCareExpense. This value is then stored in PotentialNRChildCareCredit

Choosing A Credit

Since units can take both the refundable and the non-refundable credit, the value of StateChildCareCredit is equal to the sum of PotentialNRChildCareCredit and PotentialRefChildCareCredit.

Eligibility

A tax unit is eligible for the Working Family child care credit when the following two conditions are met:

• Earned income (the sum of TotalWages, BusinessSelfEmployment and FarmSelfEmployment) must be at least the amount specified in program rule ChildCareCreditWFEarnedIncLimit_OR.
• Investment income (the sum of Interest, DividendsEstatesOrTrusts and CapitalGains) must be less than the amount specified in program rule ChildCareCreditWFInvestIncLimit_OR.

For units filing as joint, the same limits apply but the limit must be met by both head and spouse.