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Level 2
November 16, 2022
Question

Childcare expense credit

  • November 16, 2022
  • 2 replies
  • 30 views

Can I use payment for postpartum doula services toward childcare expense tax credit? or is it only daycares?

    2 replies

    Level 5
    November 16, 2022

    Hi- what an interesting question!  Unfortunately, the expenses would not qualify for the credit.  One of the qualifiers for the credit is:  "You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work."  Child and dependent care expenses must be work related to qualify for the credit. 

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    Loretta P
    Employee Tax Expert
    Employee Tax Expert
    November 16, 2022

    The IRS document regarding Child and Dependent Care Expenses (https://www.irs.gov/pub/irs-pdf/p503.pdf), the postpartum doula service seems to be eligible for the credit.  The doula would have to be providing child care and both parents working.  If the doula was helping with child care but one parent was at home not working it would not qualify.

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    aschmierAuthor
    Level 2
    November 16, 2022

    I am a single mom, who will be on short-term disability due to birth but looking for a new job. Would those qualifications work? or is it too nuanced? 

    Loretta P
    Employee Tax Expert
    Employee Tax Expert
    November 16, 2022

    If you are a single parent household and you would be actively looking for work during the time the services were being provided, it would appear they would qualify based on reading the reference article.  

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