41-168: IA 8882 Employer Child Care Tax Credit 41-168 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 8882 calculates the Iowa Employer Child Care Tax Credit using federal credit information, Iowa child care expenditures, and the tax credit award from the Iowa Economic Development Authority (IEDA). It also reports credits received from pass-through entities and must b
Who files this form
For tax year 2025, taxpayers claiming the Iowa Employer Child Care Tax Credit must use IA 8882 to calculate their allowable credit. To qualify for a credit earned directly, you must be eligible for the federal employer-provided child care credit under Internal Revenue Code section 45F and receive an award from the Iowa Economic Development Authority (IEDA).
If you receive an allocated credit from a pass-through entity, report it on line 22 of IA 8882 and include the form with your tax return.
What you'll need
Have these documents and details ready, as applicable:
- Your federal Form 8882 for the same tax year. Iowa lines 1 through 4 use amounts from that form.
- Your IEDA tax credit certificate, including the certificate number and award amount.
- Amounts of qualified child care facility expenditures for facilities in Iowa and qualified resource and referral expenditures for Iowa employees.
- Your legal name, SSN or FEIN, and tax period end date.
- For a pass-through credit, the entity’s legal name and FEIN, plus the allocated credit information from your Iowa Schedule K-1.
How to file
Include the completed IA 8882 with your tax return. Report the credit using tax credit code 30 on the applicable schedule:
- IA 1040, IA 1120, IA 1120F, IA 1041 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 complete the required entity information in IA 148, Part IV.
- IA 1041 amounts allocated to beneficiaries: Report each beneficiary’s allocated share on IA 1041 Schedule K-1.
- IA 1065: Report the credit on IA 1065 Schedule B and each member’s allocated share on IA 1065 Schedule K-1.
- IA 1120S: Report the credit on IA 1120S Schedule B and each member’s allocated share on IA 1120S Schedule K-1.
List each credit claim separately. Beneficiaries and members must report their allocated credit on line 22 of IA 8882 and include that form with their return.
Common mistakes
- Leaving IA 8882 out of the return. The form says to include it with your return.
- Using federal amounts from a different tax year. Lines 1 through 4 must use the appropriate federal Form 8882 amounts for the same tax year.
- Combining separate credit claims. The reporting instructions require each credit claim earned or received to be listed separately.
- Omitting pass-through details on IA 148. For line 22 credits received from another pass-through entity, report the required entity information in Part IV.
Questions people ask
How much is the Iowa credit?
The credit equals 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 child care facility expenditures belong on line 13?
Enter the portion of line 1 expenditures paid or incurred for qualified child care facilities in Iowa.
Which resource and referral expenditures belong on line 16?
Enter the portion of line 3 expenditures paid or incurred for Iowa employees.
Where do I report a credit received from a pass-through entity?
Report a credit received from a partnership, LLC, S corporation, estate, or trust on line 22. Then follow the reporting instructions for your return type and include IA 8882 with your return.