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I heard somewhere that child care expenses can be claimed when I file my taxes?

What are the limits to this? How much can be claimed and deducted? Any further info and insights into this?

Update:

Just so you all know, yes I already do claim the child tax credit. I'm only interested in knowing how much I get have deducted for Child Care only.

Thanks to all you actually have answered the question.

9 Answers

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  • 1 decade ago
    Favorite Answer

    First off, check out the IRS site at www.irs.gov. Look for form 2441 for child care expense credit and if you're in a state like CA go to www.ftb.gov and look for Form 3506 for the child care refundable credit.

    There must be income earned by the individual claiming the child and the child care and/or education classes which required the parent to put the child into care. You'll need the Name, the EIN# (employer identification #) from the Child care center or SS# (social security #) from the person providing day care. The address, city and zip of the place providing it and the amounts you paid during the tax year.

    You may only claim up to a maximum $3,000 per child up to two children. Hence, there is only a max. of $6,000 of paid child care no matter what you actually paid out.

    The Federal credit is usually 20% of amount paid out by you and it is claimed on page 2 of your 1040 form....and goes to reduce the tax owed on your taxable adjusted gross income. It does have income limitations and phase outs to consider too.

    If your state allows child care credit like CA you will also have to provide a phone # , and the credit is a % of your federal credit and is refundable to you.

    Hope this helped.

  • 1 decade ago

    I can tell by your question that you are not very aware of the tax laws. I suggest you get a professional to do your return. You will get more refund than the cost, and you will have confidence that it was done right. Try HR Block or Jackson Hewitt. In addition to potential credits for child care expenses you may be eligible for something called "child tax credit" and "earned income credit".

    Source(s): CPA and have worked for HR Block
  • Anonymous
    1 decade ago

    Depending on where you are, child care expenses can be claimed in the USA. Also depending on what form you are using. Check with the IRS, at IRS.gov. This question is asked on form 1040a, but you will need to have the information about the daycare, and maybe present the proper documentation.

  • Steve
    Lv 6
    1 decade ago

    You can claim a credit for child care expenses. I think that the limit is $1400 per year depending on your income.

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  • Anonymous
    1 decade ago

    It's right there plain as day on your 1040. Don't forget the child tax credit either...it's like 1k per kid. Make sure you keep reciepts and/or an anual report of payment from the daycare provider.

  • 1 decade ago

    I keep copies of my cancelled checks, when paying for child care.

    You will need the social security number of the person providing child care and they must claim they money you pay as earned income.

    I just hand everything over to h&r block, and they do it for me.

  • Anonymous
    1 decade ago

    In Australia, a 30% rebate exists to help parents and child care.

    It's best to contact your accountant for the latest figures and determine which one suits you.

  • MJ
    Lv 6
    1 decade ago

    of course such as day care cost,you need to have receipts,Dr bills if total a certain amt-ask your CPA

  • 1 decade ago

    You can find more information at the links below.

    Source(s): IRS Publication 503 Child & Dependent Care Credit http://www.irs.gov/pub/irs-pdf/p503.pdf Form 2441 on Claiming the C&DC Credit http://www.irs.gov/pub/irs-pdf/f2441.pdf
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