topic Can I use child tax care tax credit before starting grad school? in Deductions & credits

Can I use child tax care tax credit before starting grad school?

melia-fonoimoana — Sun, 28 Mar 2021 20:44:20 GMT

I am starting grad school in August and will be a full time student for five months. I am a stay at home mom, so until then I will not have any earned income. I am married, we file jointly, and my husband has earned income. I have started working with my chair professor to collect data through focus groups since I was accepted and will continue to do so throughout the summer. When I start the program, this type of research will be paid as a research assistant. As I am not a student yet, this time is considered voluntary and does not have earned income. However, it is directly related to the work I will be doing as a research assistant and as a full time grad student. I have been paying for child care during these times. I am wondering if I will be able to apply these child care costs I am accruing before starting grad school.

Re: Can I use child tax care tax credit before starting grad school?

LenaH — Sun, 28 Mar 2021 21:32:13 GMT

No. You would have had to be a full-time student for more than 6 months to qualify for the Child and Dependent Care Credit for 2020.

To qualify for the credit, you must meet all of the following criteria:

You (and your spouse, if filing jointly) must have earned income.
- The earned income requirement for one spouse is waived if s/he was a full-time student or disabled (if they lived with your spouse for more than 6 months in 2020).
You paid caregiving expenses so that you (and your spouse, if filing jointly) could work or look for work.
- The work/look for work requirement for one spouse is waived if s/he was a full-time student or disabled (if they lived with the other spouse for more than 6 months in 2020).
You paid a caregiver to care for a Qualifying Person. The caregiver can't be:
- Your spouse
- Your dependent
- Your child if they were under 19 on the last day of 2020, even if not your dependent
- The parent of the Qualifying Person, if the Qualifying Person is your child under the age of 13 during 2020
You can't file with the Married Filing Separately filing status (except under certain circumstances).
You must furnish the care provider's name, address, and (unless it's a tax-exempt organization) their SSN, ITIN, or EIN on your return.

What is the Child and Dependent Care Credit?

Re: Can I use child tax care tax credit before starting grad school?

melia-fonoimoana — Sun, 28 Mar 2021 22:33:54 GMT

From what I understand, you only need to be a full time student for five months of the year. That's what it says on these articles

https://www.irs.gov/publications/p503#en_US_2020_publink[phone number removed]

https://turbotax.intuit.com/tax-tips/family/deducting-summer-camps-and-daycare-with-the-child-and-dependent-care-credit/L8aAzvmjB

https://www.hrblock.com/tax-center/filing/credits/child-and-dependent-care-credit/

Re: Can I use child tax care tax credit before starting grad school?

KrisD15 — Sun, 28 Mar 2021 22:55:45 GMT

Below is what the IRS states. TECHNICALLY you would not be able to use the time you are not being paid and also not a student.

I suggest you find out from the school if you are considered a student when performing the focus group work.

According to the IRS:

“Full-time student. You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full-time. You must have been a full-time student for some part of each of 5 calendar months during the year. (The months need not be consecutive.) School. The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. A school doesn't include an on-the-job training course, correspondence school, or school offering courses only through the Internet. “

“Volunteer work. For this purpose, you aren't considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary.”

IRS Pub 503

Re: Can I use child tax care tax credit before starting grad school?

melia-fonoimoana — Sun, 28 Mar 2021 23:47:27 GMT

What about the times where I was taking and studying for the GRE, doing interviews for grad school programs, stuff like that? Would that be considered looking for work?

Re: Can I use child tax care tax credit before starting grad school?

JohnW152 — Mon, 29 Mar 2021 15:12:59 GMT

From what you're describing, these wouldn't be considered "looking for work."

Please see the IRS's Publication 503, Child and Dependent Care Expenses for more information.