Costs associated with a Nanny/baby sitter
2006-11-03 06:33:53 · 10 answers · asked by DR 1 in Business & Finance ➔ Taxes ➔ United States
ou may deduct up to $3,000 of the qualified child and dependent care expenses paid in a year for one qualifying individual, or $6,000 for two or more qualifying individuals. These dollar limits must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from your income.
irs.gov: FAQ
Child Care Credit/Other Credits
7.1. Child and Dependent Care Credit & Flexible Benefit Plans
7.2. Child Tax Credit
7.3. Credit for the Elderly or the Disabled
7.4. Hope & Life Time Learning Educational Credits
7.5. Other Credits
2006-11-03 06:44:19 · answer #1 · answered by bi2unicorn 3 · 0⤊ 0⤋
Costs associated with a babysitter are tax dedutible if you used the babysitter while you were working a full time job. Only a part of it is deductible and you will need all of the babysitters information such as there social security number, address and how much you paid her/him for the tax year. The babysitter will have to be notified of the amount you are deducting off your taxes because they have to claim it as income on their taxes. When preparing your taxes if you go through the irs.gov website they will have tax sites you can use, free of charge if you qualify, that are great at figuring things like that at tax time.
2006-11-03 14:40:56 · answer #2 · answered by ldviolette 1 · 1⤊ 0⤋
If it's a licensed daycare provider it definetly is. If you hired your neighbors kid to babysit while you go out for a night it's not. Generally any expenses for child care while you are at work may be deductible (it's the IRS, so of course there are some limitations/restrictions). Any expenses for child care for personal reasons are generally not deductible. There are large code sections on the IRS website that will give you a better idea. Or better yet, have a visit with your accountant.
2006-11-03 14:55:12 · answer #3 · answered by stanza_chad 2 · 1⤊ 0⤋
Yes a certain percentage of your day care costs are deductable. There is a schedule to fill out when filing form 1040. The percentage is based on your income.
2006-11-03 14:36:17 · answer #4 · answered by lcritter55118 4 · 0⤊ 0⤋
Yes you can get a nice deduction for childcare expenses just do everything on the table.
2006-11-03 14:42:09 · answer #5 · answered by Medical and Business Information 5 · 0⤊ 0⤋
Yes as stated above it is tax deductible just make sure you save all bills, receipts, paperwork etc.
2006-11-03 15:06:39 · answer #6 · answered by Alexei 1 · 0⤊ 0⤋
Yes, they are, or at least you may claim a percentage of the total yearly cost. Keep good records.
2006-11-03 14:36:18 · answer #7 · answered by shortfrog 5 · 0⤊ 0⤋
Yes, but you will need your sitter's name, address and SS#, or federal ID #. This will go on form 2441 when you file your taxes.
2006-11-07 13:24:02 · answer #8 · answered by jbird35645 2 · 0⤊ 0⤋
no only if you are a politician
2006-11-03 14:41:38 · answer #9 · answered by Anonymous · 1⤊ 0⤋
yes but keep reciepts..
2006-11-03 14:37:10 · answer #10 · answered by samshel1 3 · 0⤊ 0⤋