Refundable credit — The school readiness child care expense tax credit is refundable for taxpayers whose federal adjusted gross income is $25,000 or less. The refundable credit is claimed by resident taxpayers on Line 16 of the 2016 Louisiana income tax return, Form IT-540, and Line 16 of the 2016 Form IT-540B for nonresidents.
Nonrefundable credit — Taxpayers whose federal adjusted gross income is greater than $25,000 may apply the credit to their tax liability and if the credit is more than the taxpayer’s liability, the remaining credit can be carried forward and applied to later tax years. Excess credits can be carried forward for up to five years. The nonrefundable credit for 2016 is claimed by taxpayers on Schedule J of the Louisiana income tax return, Form IT-540, or Form IT-540B for nonresidents.
