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I pay $14,500 in daycare for my children. Why cant I file that as an expense?

 
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2 Replies
JohnB5677
Expert Alumni

I pay $14,500 in daycare for my children. Why cant I file that as an expense?

If you and your spouse work you can.

To post the Child and dependent Care Credit follow these steps.

 Select Tax Tools

  • You may have to minimize both the Federal and State options by clicking the Down Arrows on the Sidebar.
  • You will then clearly see Tax Tools
  • Click the arrow to up to see additional options
  1. Once you can work on Tax Tools
  2. On the drop-down select Tools
  3. There will be 3 or 4 green boxes
  4. Select Topics Search
  5. Type Child
  6. Choose Child/dependent care Credit
  7. Continue through the interview.

What is the Child and Dependent Care Credit?

 

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I pay $14,500 in daycare for my children. Why cant I file that as an expense?

Have you entered your income earned from working yet?  The childcare credit will not work until you have entered your W-2 income or income from self-employment that shows a profit.  And...you cannot get the childcare credit if you are filing married filing separately.

 

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

 

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

 

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names? 

 

 

 The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

 

 If your child was born in 2024 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

 

 

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

 

 

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-dependent-care-credit/L8h...

 

https://turbotax.intuit.com/tax-tips/family/the-ins-and-outs-of-the-child-and-dependent-care-tax-cre...

 

 

 

Federal>Deductions and Credits>You and Your Family>Child and Dependent Care Credit

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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