topic Child Care Detectable in Deductions & credits

Child Care Detectable

Bud380 — Mon, 15 Mar 2021 23:20:16 GMT

This past year I had to have child care coverage for my daughter, 3 days a week. I had $2,275 in expenses but they were to different people. not to an organization.

How can I deduct these expenses?

Thank you,

-Bud

Re: Child Care Detectable

ThomasM125 — Mon, 15 Mar 2021 23:35:35 GMT

You can enter your child care expenses in TurboTax to see if you qualify for a child care credit as follows:

Deductions and credits
You and your family
Child and dependent care credit

You will need to enter a social number and address for the individuals who provided the care.

Re: Child Care Detectable

Bud380 — Mon, 15 Mar 2021 23:48:37 GMT

Thank you,

Is there a limit to how many people? I had 5 different families that I utilized over the summer break.

Also, they do not watch kids for a job, will they need to claim anything on their taxes? will I need to provide them with any form to do so? what is the amount of money they have to claim, if it is over?

Thank you,

-Bud

Re: Child Care Detectable

DawnC — Tue, 16 Mar 2021 00:02:27 GMT

There is not a limit of providers you report that you paid to claim the credit. But any individual you paid would be expected to claim their income on their tax return. You should give any person you paid more than $600 a 1099 form. But they do not need that form to claim their self-employment income. The income would be included on their personal tax return if they are required to file a tax return.

If you pay them to watch your children, that is considered self-employment income to them and it has to be included on their tax return, especially if you are going to use those payments as a tax credit on your tax return.

Do I need to file a federal return this year? Thoe you paid can use this chart to see if they are required to file. If they are, they must include all of their income, including what you paid to them for childcare.