Can day care be deducted from your income tax?

Answer 1

No, not deducted.

With daycare you have two options. At the end of the year when you file your return you complete form 2441, Credit for Dependent Care Expenses. On this form, you may enter up to $3,000 of qualifying childcare costs (per child with limits) and compute your (non-refundable) tax credit.

A better option might be checking out your employers cafeteria, flex, or Section 125 plan (all the same thing, just different names). You can defer up to $5,000 of your earnings to the flex plan pre-tax. That means no income or other taxes. During the year, you submit receipts to the flex plan administrator who will write you a check. Don't defer more than you expect in expense.

Hope this helps.

Answer 2

Our tax lady deducts ours but you have to have the license # of your day care or the social security # of the person so they can make sure that IRS can make sure they put down the income.

Answer 3

Yes, and you should. It is not going to be much, around $500-700, but at least it is something that is better then nothing. When you file you taxes, make sure you bring this up to your tax advisor. Also you need to bring any paperwork you have from childcare facility. If you have more then 1 child, then return ($$) will be slightly higher.

Answer 4

Yes, childcare expenses can be deducted. Just make sure the person providing it is claiming it as income or it can get messy!!

Answer 5

Actually day care is eligible for a credit. the credit amount is based upon you income, the number of kids in day care and the total expense you paid.

Answer 6

The answer above me is the most correct one.

In additional, it is $3000/ child but the credit is pharse out if your AGI exceed certain amount.

Answer 7

Yes it can be! Take your receipts at the end of the year to your CPA.

Answer 8

yes it's called a child care credit!!!!keep your receipts.