Arkansas Dependent Care and Developmental Disability Tax Credits¶
Arkansas state income tax credits for household and dependent care expenses that enable work, plus a separate credit for taxpayers maintaining, supporting, and caring for a child with a developmental disability in the taxpayer's home.
Arkansas allows a state household and dependent care credit tied to the federal household and dependent care credit for expenses necessary to obtain or hold gainful employment. The standard credit is 10% of the federal credit; a 20% refundable credit may apply for qualifying child care expenses at an approved childcare facility. Arkansas also provides a $500 per-tax-year credit for each child with a developmental disability when the taxpayer maintains, supports, and cares for the child in the taxpayer's home.