Oklahoma childcare\child tax credit

[Dan]

Question:  On the 1040 return there is $500 on line 19 regarding credit for other dependents.  But the Oklahoma Form 511 return on page 2, line 15 does not mention the words for other dependents.  ATX program puts 25.00 on Form 511, line 15 but the TaxAct program doesn't.

Reading the Oklahoma instructions, it says concerning line 15 you can take 5% of the child tax credit which includes both the nonrefundable child tax credit and the refundable additional tax credit.  It does not say anything about credit for other dependents. 

[Dan]

What tax program is correct?

[jklcpa]

Actually, what the OK instructions say is this:

Quote

Child Care/Child Tax Credit
Complete line 15 unless your Oklahoma AGI (Form 511, line 7) is less than your Federal AGI (Form 511, line 1). If your Oklahoma AGI is less than your Federal AGI, complete Schedule 511-F to determine the amount to enter on line 15.
If your Federal AGI is $100,000 or less and you are allowed either a credit for child care expenses or the child tax credit on your federal return, you are allowed a credit against your Oklahoma tax. Your Oklahoma credit is the greater of:
• 20% of the credit for child care expenses allowed by the IRC.
-OR-
• 5% of the child tax credit allowed by the IRC. This includes both the nonrefundable child tax credit and the
refundable additional child tax credit.
If your Federal AGI is greater than $100,000, no credit is allowed.

 

Remember that each tax program you use has its own quirks, and some do more for you automatically than others. Some require a checkbox to give credits or to exclude them. Sometimes that is on the federal input, sometimes on the state. I've found this is especially true of items specific to the state. It sounds like maybe you have missed some input within the TaxAct program.

In this case, I'd say that ATX is correct since the ODC is defined in a section within IRC sec 24 entitled "special rules for tax years 2018 through 2025". IRC sec 24 is the code sec for the CTC, and sec 24(h) is where the special rules are that allow the ODC. All that being said, you are the preparer being paid for this, so that is up to you to decide if my interpretation is correct since I have never done an OK return.

Here's a link to the code so that you can see how sec 24(h), specifically 24(h)(4) is within the entire section governing the CTC.
https://irc.bloombergtax.com/public/uscode/doc/irc/section_24