Indiana taxpayers could claim a refundable credit for care expenses

An eligible individual could claim an Indiana tax credit tied to the federal child and dependent care credit claimed for that year. It covers individuals eligible for the federal child and dependent care credit for employment-related care expenses. For a joint return, the individual's and spouse's adjusted gross income is used. Income of $40,000 or less gets 100% of the claimed federal credit; over $40,000 through $60,000 gets 75%; over $60,000 through $75,000 gets 50%; income above $75,000 gets no credit. If the credit exceeds the tax remaining after earlier credits, the excess is refunded. The credit applies to taxable years beginning after December 31, 2025.