Service Fee for locating Child Care Qualified Person, is that deductable as a Child Care Expense?

ericcharlesschli — Thu, 06 Jun 2019 00:53:27 GMT

Both work, in order to find a Qualified Nanny, we paid mony to "My Girl Friday Nanny Service" to locate and hire a nanny. Is the Service Fee deductible as a Child Care Expense?

Yes, the service fee for locating a nanny is an IRS Child...

HelenaC — Thu, 06 Jun 2019 00:53:29 GMT

Yes, the service fee for locating a nanny is an IRS Child and Dependent Care expense.

Per 2016 Publication 503 - IRS.gov page 7, Fees and deposits. Fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they aren't directly for care. However, a forfeited deposit isn't for the care of a qualifying person if care isn't provided.

Example 1. You paid a fee to an agency to get the services of the nanny who cares for your 2-year-old daughter while you work. The fee you paid is a work-related expense.

Example 2. You placed a deposit with a preschool to reserve a place for your 3-year-old child. You later sent your child to a different preschool and forfeited the deposit. The forfeited deposit isn't for care and therefore not a work-related expense.

To enter your Dependent and Care expenses:

Sign into your account and open your return by clicking the orange Take me to my return button.
Then, search for this exact phrase in the upper right corner: child care credit (if necessary, copy/paste from here). In your search results, click the "Jump to" link and we'll take you right there.

Related Information:

What is the Child and Dependent Care Credit?

topic Service Fee for locating Child Care Qualified Person, is that deductable as a Child Care Expense? in Deductions & credits

Service Fee for locating Child Care Qualified Person, is that deductable as a Child Care Expense?

Yes, the service fee for locating a nanny is an IRS Child...