41-168: IA 8882 Employer Child Care Tax Credit 41-168 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 8882 calculates the Iowa Employer Child Care Tax Credit using federal credit information, qualifying Iowa expenditures, and the tax credit award from the Iowa Economic Development Authority (IEDA). It also reports credits received from a pass-through entity.
Who files this form
Use the 2024 IA 8882 to calculate your Iowa Employer Child Care Tax Credit if you are eligible for the federal employer-provided child care credit under Internal Revenue Code section 45F and have received a tax credit award from the Iowa Economic Development Authority (IEDA).
Members and beneficiaries receiving an allocated credit must report it on line 22 of IA 8882 and include the form with their tax return.
What you'll need
Have these documents and details ready:
- Your federal Form 8882 for the same tax year. Iowa lines 1–4 use amounts from that form.
- Your IEDA tax credit certificate, including the certificate number and award amount.
- Your legal name, SSN or FEIN, and tax period end date.
- The amounts of qualified facility expenditures for Iowa facilities and qualified resource and referral expenditures for Iowa employees.
- If applicable, the pass-through entity's legal name and FEIN, along with the allocated credit reported on your Iowa Schedule K-1.
How to file
Complete IA 8882 and include it with your tax return. Report the credit using tax credit code 30 on the applicable schedule:
- IA 1040, IA 1120, IA 1120F, IA 1041 for amounts claimed at the entity level, Credit Union Moneys and Credits Tax Return, or Insurance Premiums Tax: Report lines 21 and 22 on IA 148, Part I. For credits received from another pass-through entity, also provide the required entity information in Part IV.
- IA 1041 for amounts allocated to beneficiaries: Report each beneficiary's allocated share on IA 1041 Schedule K-1. Instruct beneficiaries to report their credit on line 22 of IA 8882 and attach IA 8882 to their return.
- IA 1065: Report lines 21 and 22 on IA 1065 Schedule B and each member's allocated share on IA 1065 Schedule K-1.
- IA 1120S: Report lines 21 and 22 on IA 1120S Schedule B and each member's allocated share on IA 1120S Schedule K-1.
Partnerships and S corporations must instruct members to report their allocated credit on line 22 of IA 8882 and include IA 8882 with their return. List each credit claim earned or received separately on the applicable schedules.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Leaving out IA 8882: The form says to include it with your return.
- Combining separate credit claims: The reporting instructions say to list each credit claim earned or received separately.
- Omitting pass-through information: For line 22 amounts reported on IA 148, provide the required pass-through entity information in Part IV and list each pass-through claim separately.
- Not passing along reporting instructions: Entities allocating credits must instruct members or beneficiaries to report the credit on line 22 of IA 8882 and include that form with their return.
Questions people ask
How much is the Iowa credit?
It is the portion of the federal credit you were eligible for in the same tax year that is attributable to Iowa expenditures, limited to your IEDA award. Line 21 is the smaller of the tentative Iowa credit on line 19 or the award on line 20.
Which facility expenditures go on line 13?
Enter the portion of the qualified child care facility expenditures on line 1 that was paid or incurred for qualified child care facilities in Iowa.
Which resource and referral expenditures go on line 16?
Enter the portion of the qualified child care resource and referral expenditures on line 3 that was paid or incurred for Iowa employees.
Where do I enter a credit received from a pass-through entity?
Enter a credit received from a partnership, LLC, S corporation, estate, or trust on line 22. Follow the form's reporting instructions for your return type and include IA 8882 with your return.