Is Childcare Tax-Deductible?

Updated on October 12, 2006
A.D. asks from Plano, TX
14 answers

I was talking to my cousin today and she mentioned that in certain instances, childcare expenses are tax-deductible -- and the level will actually differ with the number of kids you have... I'm sorry if this is an obvious question, but if there are any moms out there who know about this issue and could help me understand it better, I'd be really grateful!

1 mom found this helpful

What can I do next?

  • Add yourAnswer own comment
  • Ask your own question Add Question
  • Join the Mamapedia community Mamapedia
  • as inappropriate
  • this with your friends

Featured Answers

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

M.

answers from Dallas on

Does anyone know if a facility a actual Day school, has to provide tax reciepts, my DD was at a home care timm a couple on months ago and the lady always gave us a reciept but the new school (pre-school) says they do not provide them. Help.

1 mom found this helpful

More Answers

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

T.B.

answers from Dallas on

Yes, up to a certain dollar amount. You just have to ask your childcare facility for a tax statement at the end of the year. We have 2 kids and I do know that we claimed both daycares' annual amounts, but know for sure that they only allow for a certain amount. We do our taxes with Jackson Hewitt and they are very helpful.... Good Luck!
T.

2 moms found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

K.

answers from Dallas on

Childcare costs are not a deduction, but are credits. There is a credit called "Dependent Child Care Credit" that you can take. There is a form that must be completed and the credit amount will vary based on your income and the number of kids.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

R.A.

answers from Dallas on

If you deduct it pre-tax from your paycheck you are allowed to deduct $5000k a year. Total- not per child.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

M.E.

answers from Dallas on

It is tax deductible if you have a tax id #, if you have given receipts, and you provide your ss#. Ask your accountant he can give you more details

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

L.G.

answers from Dallas on

Yes, childcare is tax deductible. Of course, since you are dealing with the IRS, there is a wonderful formula you have to use to determine how much you can deduct. Just as wonderful is the fact that the more you make, the less you can deduct. If your employer offers a pre-tax account, such as dependent care reimbursement, your childcare funds are taken out of your check pre-tax versus the 20%+ the IRS gives you. It is a better tax savings.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

K.W.

answers from Dallas on

I am a childcare provider and my parents deduct me every year. hope this helps.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.M.

answers from Dallas on

Yes you can claim the amount you pay for childcare on your taxes but you won't get all of it back. You just need to have a statement at the end of the year and you will need your daycare providers tax id # if it is a home daycare I think sometimes the SS# works as well.
Also you may want to look into whether you can have your daycare expenses taken out pre-tax. Soem employers do that. We just had a certain amount taken out per month before taxes were taken out then we just sent in our receipt for the month and they would send a check.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

E.T.

answers from Dallas on

A.:

I didn't know that neither; is anyway to share the answers you will get...??

Thanks,

E.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

A.T.

answers from Little Rock on

Yes, I was able to use mine on taxes as long as it was atleast $1500 or $1800 worth of daycare. I had an individual watch my daughter so I just had to provide her ss#. It actually made a big difference it how much I got back in taxes.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

L.

answers from Dallas on

Absolutely! Do you work? Look into whether or not your company has a flexible spending account as that is the easiest way to do it, it comes right out of your paycheck tax free and you can deduct $5,000 per year total. You have to have reciepts though. If you decide to write it off on your actual tax return still make sure that you keep a record of the expenses in the form of reciepts just in case you get audited. Hope this helps

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

C.

answers from Dallas on

Go to the IRS website & search for "Child & Dependent Care Expenses" under Forms. In 2003 it was Form 2441. You enter the total amount paid for childcare. Then you use a calculation (provided on the form) using your earned income, a decimal amount based upon your income to determine how much you can right off. Obviously the more you make, the lower the decimal amount and less you can right off. In 2003, the decimal amount was 0.2 or 20%. Of the $3,614 we paid in 2003, we could right off $600. Hope this helps & good luck!

C.

1 mom found this helpful
Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

R.

answers from Dallas on

Yes child care is tax deductible. Save your receipts...there is a special one page with the 10 40 a dnd 1040 long that you list your expenses and caretakers *need address, phone and their social security number**or if licensed school, their number*. there is a percentage of it depending on income and household size.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.Y.

answers from Dallas on

Every year the deduction I get from childcare is a huge blessing. There is a cap on how much you can deduct. I receive a letter from my daycare every year that shows how much I have paid in. It really does help.

For Updates and Special Promotions
Follow Us

Related Questions

Related Searches