My divorce will be final next month and I have agreed to let my ex claim the youngest child. I have been paying little over $500 a month in childcare and was wondering can I claim the childcare credit. This is his last year of daycare and I want to get the credit, but I don't want to break any IRS rules.
Sincerely,
Aliecia
2007-10-22 15:17:24 · 4 answers · asked by Aliecia 1 in Business & Finance ➔ Taxes ➔ United States
Yes you can claim a credit for dependent care if your child qualifies as your dependent and qualifies for the dependent care credit, but you have waived the exemption to the noncustodial parent through a court document or Form 8332.
Have you considered that the youngest child may be worth more as an exemption because that child will have more years for which he qualifies you for the Child Tax Credit. Just something to think about for next year.
2007-10-22 17:46:13 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
You can claim the child care credit if you are the custodial parent, even if your ex is allowed to take the exemption for the child as a dependent.
2007-10-22 15:42:37 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
The custoodial parent who pays the bill gets the credit. So if your child stays with you and you pay the bill, then you get the childcare credit. By the way the most you can get is $3,000.
2007-10-22 15:32:19 · answer #3 · answered by Gary 5 · 0⤊ 2⤋
You paid it, you take it.
2007-10-22 15:24:54 · answer #4 · answered by Anonymous · 1⤊ 1⤋