Can I claim child care credit w/o claiming him as dependent?

Question

I paid daycare expenses for my son last year. I am letting his father claim him as a dependant, BUT I claimed his daycare expenses (only)... is this legal? I was able to do so on TaxCut this year and last. My son's father and I aren't married, but we live together. My son's father had his taxes done by H&RBlock and was told I can't claim daycare expenses (I PAID!!) if I do not claim him as a dependant. I checked taxcut and the way it's worded says I can claim child care credit on child I am not claiming, Please help.

Answer 1

If you're living together, you have the choice of which of you claims your son as an exemption, but only that parent can take the associated benefits.

If you were NOT living together, you'd fall under the rules for divorced or separated parents, where the non-custodial parent could take the exemption if the custodial parent agreed, but the custodial parent could still take the dependent care credit. But since you're living together, that doesn't apply to you. Sorry - not what you wanted to hear, I know.

Tax cut is probably saying it's OK to take because there's nowhere in their program for it to know that you're living together - since you'd file as single, it just assumes that you aren't together.

Maybe you claimed it last year and got away with it, and maybe you would this year too - but it isn't legal, and if the IRS ever catches it, you'll have to pay back the money plus interest and penalties, and if they find it on one year, they'll look at previous years also. And the IRS is doing a lot more investigating lately over deductions and credits associated with dependents.

Answer 2

If you got away with it, it might be ok, i dunno for sure. Honestly you should let his father claim the expense and split the money. You'd get more that way and it would be completely legal. I really don't think you could be held liable for an honest mistake with a home tax prep kit, as far as charges go, but you may have to pay the money back if your return ever comes under scrutiny