Can i claim child care expenses for non-dependent child?

[KrisD15]

Seems like you are asking if you can claim your 18 year old daughter in a thread that is addressing Child Care expenses. 

It sounds like you CAN claim your daughter as your dependent. 

If your question is about claiming an 18 year old daughter and you are confused because she earned income:

- if she is your qualifying child, her income is of no concern as long as she did not supply more than half her own support. 

To claim a dependent as your qualifying child: 

• "Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
• Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
• Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.
• Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support.
• Are you the only person claiming them? "

So if you are asking about claiming your daughter, yes, if she meets the requirements listed above. 

@teresamorgan0301969

[Littlemssteph]

The question I have, is that both of my children live with me 95% of the year.  In our court agreement I claim my daughter and he claims our son.  However, I paid expenses for both.  Can I claim the child care expenses for my son without listing him as a dependent?

[MaryM428]

Yes you can claim the daycare expenses that you paid even if it is not your turn to claim him.  You, in fact, are the only person who can claim those expenses.

Be sure that your son is set up as a non-dependent that lives with you all year, even though it is the other parent's year to claim him.  

In TurboTax, this is how you should be filing when it is not your turn to claim the child:

• You state the child lived with you __ months
• And you state you will release the dependent claim to the other parent via form 8332
• Turbotax will offer to print a form 8332 for you when you file to give to the other parent

@Littlemssteph

[teresamorgan0301969]

Hello, @MaryM428  @KrisD15 

Thank you,

Teresa M.

[bamafamily1989]

I am getting confused. 

My question is about DAYCARE expenses, NOT the childcare credit.

How do I, as the non-custodial parent, who pays half of the daycare expenses, claim the portion of the daycare expenses that I pay?

[Hal_Al]

@bamafamily1989 

Q.  How do I, as the non-custodial parent, who pays half of the daycare expenses, claim the portion of the daycare expenses that I pay?

A. You are not allowed to claim those expenses, even if you are claiming the child as a dependent.  This is because ONLY the custodial parent is allowed to do that.

[Irene2805]

You must be the child's custodial parent to claim the credit for child and dependent care.

The IRS defines custodial parent as "the parent with whom the child lived for the greater number of nights in 2020. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income."

For more information, see IRS Pub. 503 - Child and Dependent Care Expenses

[ColeenD3]

No. The child must be your dependent unless you qualify as divorced or separated parents.

For the purposes of the Child and Dependent Care Credit, a "Qualifying Person" is defined as one of the following:

• A child that was age 12 (or younger) for at least part of 2020 and who is also claimed as a dependent on your return. If the child turns 13 during the year, the child will qualify for the part of the year that they were under age 13
  • Exception: See special rules for divorced or separated parents, below
• Your spouse, if they're unable to care for themselves and lived in your home for at least 6 months during 2020
• Anybody who lived in your home for at least 6 months during 2020 and was unable to care for themselves, if they:
  • Are claimed as a dependent on your return, or
  • Could have been claimed as your dependent but weren't because their gross income was $4,300 or more, they filed a joint return, or you (or your jointly-filing spouse) could be claimed as a dependent on somebody else's 2020 return

Special rules for children of parents who are divorced, separated, or living apart

Even if you can't claim your child as a dependent, they're treated as your qualifying person if:

• The child either:
  • Was 12 or under or wasn't physically or mentally able to care for themselves
  • Received over half their support during 2020 from one or both parents, who are divorced under a decree of divorce, legally separated under a decree of separate maintenance or written separation agreement, or lived apart from July 1 through December 31 of 2020
• You were the child's custodial parent. The custodial parent is the parent with whom the child lived for the greater number of nights in 2020. If the child was with each parent for an equal number of nights, generally the custodial parent is the parent with the higher adjusted gross income. The noncustodial parent can't treat the child as a qualifying person (and therefore, cannot claim this credit), even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents.

[michael1941]

All of the "experts" here are not answering the question.  The question is not about the CREDIT.  The question is deducting the EXPENSES.  The purpose is because if a filer puts money into an FSA and spends it on a child, the only way to not have that FSA amount be taxed is to show that it was spent.  If an FSA is not spent it is treated as taxable income.

[BillM223]

The tests for a qualifying person is the same to claim the Child and Dependent Care Credit and to justify the expenses in box 10 on the W-2 (the exclusion).

See the IRS Pub for Child and Dependent Care Expenses here.

@michael1941

[michael1941]

Pub 503 is for claiming the Credit. 

Take this scenario:

Married couple, filing separately, one child.  They each contribute $2500 to their own separate DCFSA accounts.  Parent A pays childcare expenses Jan-June, Parent B pays expenses July-Dec.  They both receive reimbursement for the full amount of their FSA accounts.  They file taxes MFS; Parent A claims the child as dependent. 

Are you saying that only Parent A should have received reimbursement?  And that only Parent A is eligible to the tax deduction for the FSA amounts?  That Parent B must pay taxes on his $2500 spent on childcare, reimbursed from his FSA? 

I would love to see some citations for that if you can find them, because this is complicated stuff.

Note that I am not talking at all about the child care tax credit.

[AmyC]

You must claim the child to claim the FSA expenses. Otherwise, the FSA is taxable income.  From FSA Dependent Care FAQs | WageWorks:

All of the following must be true about the care:

• The care is provided while you work or to enable you to look for work. If you are married, the care is provided while your spouse also works or to enable your spouse to look for work or go to school full-time (at least five months a year) or while your spouse is incapable of self-care.
• The care is provided when the dependent meets the definition of a qualifying child or relative (per the IRS, based on a tax year).
• The care may be provided by a relative or non-relative but cannot be provided by your child under the age of 19 (tax dependent or not), the child’s parent, or another tax dependent.
• Your care provider conforms to state and local laws (including being licensed, if required) and is able to provide you with his/her Social Security or Tax ID number. You will need this when filing the Form 2441 with your income taxes.
• Disregard temporary absences due to illness, education, business, vacation, or military service. You must maintain a home for the person during the temporary absence and the person must be expected to return after the absence.

Related with examples: Dependent Care FSA for Parents Who are Divorced 

@michael1941

[michael1941]

Thank you.  That is unfortunate.  So when MFS, it only makes sense for one spouse to contribute to a DCFSA (assuming one child).  Having both spouses contribute to a DCFSA is possible but pointless because there is no tax benefit for the second spouse?  Do I have that correct?

[MarilynG]

Yes, that is correct.  The second spouse that does not claim the dependent care expenses (for a dependent on their return) will be taxed on their unused FSA contribution.

Some employers allow a non-taxable carryover to the next year, but the funds would need to be used the following year. 

@michael1941