I had to pay for childcare expense in December 2017 for a week of childcare in January 2018. Which year do I enter that on my taxes?

[KrisD · Accepted solution]

You would claim that expense in tax year 2018, so on your next year tax return. 

According to the IRS:

“If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Claim the expenses for the later year as if they were actually paid in that later year.”

CLICK HERE for IRS Pub 503 Child and Dependent Care Credit

[nvcrash]

Thank you for the clarification.  I guess I'll get it next year 🙂

[sushil1757]

I have a question.
We received an invoice on December 15 Y1 for a 30 days service that we will be taking.

Invoice reads as
For services from December 15 - December 31 Y1 - $ 4000

For services Jan 1 y2 - jan 15 y2 - $ 6000.

Then @ December 31 y1
We should expense only 4000. Am I correct.

January will be expensed in next year Because services are not yet performed for 15 days in January.

[xmasbaby0]

@sushil1757  This is a very old thread, and the topic was childcare paid in advance.

Are you asking about childcare?   Or something else?   Even with the rising costs of daycare, $2000 for fifteen days of childcare seems excessive.

What expenses are you trying to enter?