If you are asking if you can deduct a Child Care Credit for you child who attends the day care that your wife owns in your own home, then the answer is no. Your wife is not a paid provider.
What
is the Child and Dependent Care Credit? Requirements
The Child and Dependent Care Credit
(not to be confused with the similar-sounding Child Tax Credit) can reduce your tax bill if you paid for a dependent's care so that
you could work or look for work.
To
qualify for this credit, you must meet all
of these 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
the other spouse for more than 6 months in 2018
- 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 2018
- Your spouse;
- Your dependent;
- Your child if they were under
19 on the last day of 2018, even if not your dependent; or
- The parent of the Qualifying
Person, if the Qualifying Person is your child under the age of 13 during
2018.
- You cannot file with the
Married Filing Separately filing status
- 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.
The
credit is worth anywhere from 20% to 35% of your qualified expenses, up to
$3,000 (for one qualifying person) and $6,000 (for two or more qualifying
persons). Your percentage depends on your AGI, with the higher percentages
applying to lower incomes and vice-versa.
