Child tax credit in Iowa
Varies
Does Iowa Have a Child Tax Credit?
Short answer: No state child tax credit, but Iowa has a child care credit: Refundable percentage of the federal credit, based on net income: 75% under $10,000; 65% for $10,000-$19,999; 55% for $20,000-$24,999; 50% for $25,000-$34,999; 40% for $35,000-$39,999; 30% for $40,000-$89,999. No credit at $90,000 or more. Dependent credit of $40 per dependent. Iowa also has a separate Early Childhood Development credit (not detailed here). Iowa does have an earned income credit: 15% of the federal EITC.
Dependent credit of $40 per dependent. Iowa also has a separate Early Childhood Development credit (not detailed here). The federal child tax credit is $2,200 per child under 17 for 2026 and is claimed on Form 1040 regardless of state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Child tax credit in Iowa
Varies
Individuals / Personal Taxes
No state child tax credit, but Iowa has a child care credit: Refundable percentage of the federal credit, based on net income: 75% under $10,000; 65% for $10,000-$19,999; 55% for $20,000-$24,999; 50% for $25,000-$34,999; 40% for $35,000-$39,999; 30% for $40,000-$89,999. No credit at $90,000 or more. Dependent credit of $40 per dependent. Iowa also has a separate Early Childhood Development credit (not detailed here). Iowa does have an earned income credit: 15% of the federal EITC.
Business justification
No state child tax credit, but Iowa has a child care credit: Refundable percentage of the federal credit, based on net income: 75% under $10,000; 65% for $10,000-$19,999; 55% for $20,000-$24,999; 50% for $25,000-$34,999; 40% for $35,000-$39,999; 30% for $40,000-$89,999. No credit at $90,000 or more. Dependent credit of $40 per dependent. Iowa also has a separate Early Childhood Development credit (not detailed here). Iowa does have an earned income credit: 15% of the federal EITC. Dependent credit of $40 per dependent. Iowa also has a separate Early Childhood Development credit (not detailed here). The federal child tax credit is $2,200 per child under 17 for 2026 and is claimed on Form 1040 regardless of state.
Category
- Personal Tax Deductions