Do I list childcare expenses based on the year that I paid, or the year that the childcare took place?

[dmp348]

Our childcare provider charges by the semester, and we pay at the end of the previous semester. On my 2024 taxes, do I list the expenses we paid in December 2023 for spring 2024 care? Or the expenses we paid in December 2024 for spring 2025 care?

[MindyB]

Yes, you would list the expenses you paid in December of 2023 for Spring 2024 on your 2024 tax return, and not the amount you paid in December 2024 for Spring 2025. 

The IRS specifically addresses this situation in Publication 503, and states: "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."