Child Care

[fasteddie577]

My daughter works and her daughter age 6, is in a Boys & Girl Club Program MECC that takes care of her before and after school. She paid $2,000 for this program. They watch her until my daughter gets out of work daily. Will this qualify and childcare for tax purposes? 

Thanks

[DanaB27]

Yes, if your daughter worked and paid for child care then this expense can qualify for Child and Dependent Care Credit.  Please see What is the Child and Dependent Care Credit? for all the requirements.

[fasteddie577]

Hi, thank you for the reply. I entered the child care expense and go the message: You can't take Child & Dependent Care Credit or Exclusion. 

Not sure why? Did the exclude this credit in 2022?

Daughter's income before standard deduction is $15,000. Her taxable income is $0.00 after deductions. Is this why? Thank you. 

[Critter-3 · Accepted solution]

Daughter's income before standard deduction is $15,000. Her taxable income is $0.00 after deductions. Is this why?     Yep ... the credit can only zero out your taxes.  In 2021 the credit was fully refundable.  

[fasteddie577]

Thank you. Great job!