Question

When I input childcare expenses we incurred for the childcare credit the amount we owe to state taxes increases. Even for a $0 amount. Is this a glitch?

Forum|Forum|3 years ago
February 2, 2023
1 reply
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The amount increases with each childcare amount entered.

TurboTax Deluxe Online

Need clarification on which state you are filing with. Some states give a tax credit for Federal Income Tax to be paid. If your state does this, then your childcare credit would reduce your Federal Income tax, reducing the credit available to you for your state income tax. We will need to know which state you are in and whether this applies. You can also check with your State Department of Taxation if this is a type of credit they offer.

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H

harbintbAuthor

Thank you! We are filing in Alabama.

JosephS1

Yes, Alabama is one of the states that allows for a deduction for Federal Income Tax. So as we have discussed, lowering your Federal Income Tax will lower the deduction from income for Alabama taxable income. I have enclosed a link to the AL Form 40A instructions. On Page 11 of the Instructions it shows that on Page 2, Part III of the return what you can list as your Federal Tax Deduction if you would like to read the instructions.

Form 40A Instructions

@harbintb

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