Is Childcare Tax-Deductible?

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.

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.

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.

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

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

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.

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

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.

A.:

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

Thanks,

E.

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.

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

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.

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.

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.