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Level 1
posted Feb 13, 2021 6:44:13 PM

Child care cost for 2020-2021

I paid pre-school fees for the full 2020-2021 school year in August 2020. The fees cover a period from Sept 2020 to Aug 2021. Should I enter the full fee amount as child/dependent care expense in the 2020 tax year or should I split this amount in 2020 and 2021 tax years? If I split the fee amount between 2 tax years, can I enter dependent care expense for 2021 tax year that was paid in 2020 tax year? 

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1 Replies
Level 15
Feb 13, 2021 7:58:53 PM

You have to split the expenses between the two years. On your 2020 tax return enter only the cost of the care that was provided in 2020. Next year, when you do your 2021 tax return, you will enter the amount you paid in 2020 for care that was provided in 2021. You cannot enter the 2021 amount now, in your 2020 tax return.