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Level 1
June 1, 2019
Question

If I don't pay taxes on childcare is it claimable

  • June 1, 2019
  • 1 reply
  • 6 views
I pay a monthly copay out of pocket and get state assistance for the other portion. Is this claimable?

1 reply

Level 2
June 1, 2019
If the amount deducted from your paycheck is a pre-tax deduction and you use that money to pay your childcare then the amount used from that pre-tax account for childcare expense would not be a deduction on your tax return.  However, if your childcare exceeded the amount in your pre-tax account then the amount that is greater than the pre-taxed deduction would be an allowable deduction.  ie:  you have $5000 in your pre-tax childcare account.  You use the whole $5000 to pay childcare but the total childcare expense was $7000.  Then only $2000 would be allowed as a childcare deduction.