As far as the child dependant care credit goes??

Question

I came across something on the net for a specific state regarding federal child dependant care costs if you run your own daycare you CAN claim the dependant care credit for your own child if YOU have them in your care.........This just didnt seem right, does anyone know about this????

Answer 1

It might even be true, although I'm certainly not sure of that. But remember than then you'd have to claim the amount that you paid as income to your daycare, and by the time you paid the taxes on that, including the 15.3% self-employment tax, you'd be lucky to break even with the credit.

Did the article you read say anything about the center being incorporated? If it is, then would make sense you could probably claim the credit. But again, the corporation would also have to claim the income.