Can I claim the Child Care Tax Credit if payments are made from other parents bank account?

[Smarkle11]

I am the custodial parent of my 4 year old son. I do not have a checking account or credit card so all of my son's daycare payments come out of his banking account and I give him the cash. I am claiming my son as my dependent this year, can I also claim his daycare expenses? Either my name or both our names are on the account.  If so what supporting documentation do I need?

[RayW7]

This should not be an issue as long as you are paying for the care and you meet the other qualifications.

-follow these link(s) for additional information regarding qualifications-

2020 Child Tax Credit Calculator and Top 7 Requirements ...

What is the Additional Child Tax Credit? - TurboTax Tax Tips ...

[Smarkle11]

If I'm asked to provide supporting documentation, as long as he is deemed my dependent under the tax law, will I only need his itemized payment histories from his daycares/schools even though they show the checks being drawn from his fathers bank account? By the way we are not married and file separately. Every year since our son has been born I have claimed him as per our arrangement. Do I also need a statement from him attesting to my giving him the cash?

[gloriah5200]

In addition to the other requirements referred to above, if the payments are made from the other parent's bank account and you give the other parent cash for being able to pay them out of the other parent's account, then you would need to be able to provide proof of the cash you paid him to pay each of the payments for you, as well as the other parent's bank account information and payments made on your behalf.

Is the day care account also in your name or in the name of the other parent?  Your name needs to be on the daycare account to show that you are responsible for making the payments.

[Smarkle11]

The accounts are in my name. Unfortunately due to the pandemic my son was at three different schools/providers. 

I am almost positive that his father would provide me with printouts from his bank account. But I highly doubt he deposited my money separately, or maybe not even at all if there was a need for a cash transaction he needed to make. I wouldn't even know how to provide documentation of this. 

If I provide the documentation they want to the best of my ability and am still denied the credit can you request a hearing or appeal to actually sit down (or probably more like speak to on phone) and examine the case?

The credit adds a little over $1,000 to my NYS return (nothing on federal) and I am considering not even dealing with the headache but I meet the qualifications albeit without the paper trail. 

[DawnC]

You are going to enter the amounts paid to the daycare on your tax return.  It is very unlikely that the IRS or any other taxing authority is going to want copies of payments showing what bank account the money came from.   The payments were made to the daycare for caring for your dependent listed on your tax return.   That should be more than enough information.   Dad is not claiming the child or credit, right?    Unless he is fighting with you over custody and tax issues or claiming the child and credits, it is not going to come up.   

[Smarkle11]

Dad and I have a good relationship and are just not married. We share expenses for our son and really don't split hairs. That's why I really don't have any documentation because I never really thought I would need any. The reason I am concerned is I have a friend in a similar situation who is being verified for this credit. I want to be prepared.  I figured I would throw it out there and ask any tax experts who may have had this or a similar situation arise in their professional career.

Thanks for all the replies!

[ThomasM125]

It doesn't matter where you got the money from, as long as you paid the expenses for child care you can take the deduction. For documentation purposes, you can ask the daycare for a statement in your name showing the expenses paid for the year.