Bill > H3174

This bill modifies Massachusetts tax law to create a new child and dependent care tax credit for state income tax purposes. Specifically, the legislation allows taxpayers to claim a $500 credit for each dependent or qualifying individual for whom they incurred child or dependent care expenses, with the credit being limited to 25% of the federal child and dependent care tax credit for the same tax year. The credit is available only to taxpayers who are Massachusetts residents for at least part of the taxable year, and for married taxpayers, they must either file a joint tax return or qualify as a head of household. For part-year residents, the credit will be prorated based on the number of days they lived in Massachusetts during the tax year. If the credit amount exceeds the taxpayer's tax liability, the state will pay the full excess amount to the taxpayer. Non-residents who were not Massachusetts residents at any point during the tax year are ineligible for this credit.

Budget and Finance

https://malegislature.gov/Bills/194/H3174