Q. If the other parent claims the child as dependent, but you still have significant child care expenses, is there any way to deduct them?
Simple answer: no.
But taxes aren't simple. First, only the custodial parent can claim the dependent care credit (DCC), regardless of who claims the child as a dependent. So, if the child lives with you, but the non custodial parent is claiming him as a dependent, then yes, you can claim the DCC. If you want to argue that you have "joint custody" (which technically doesn't exist for tax purposes), then only the parent claiming the dependent can claim DCC.
But, there is a way to "deduct" your costs. Let the other parent claim what you paid on her return. There is a tax court ruling that seems to say that she can take the deduction even if you were they one that actually paid it under the theory that you paying the expense is just another form of child support and therefore it was her money that paid for it.
