Tax season, tax question thread....!

[jasmine]

My taxes have always been easy from day one. Simple w-2, simple filing...
But this year I work at a daycare and I have brought my son with me, and I do pay for him out of my pocket, can I ask my work to give me some kind of list/paper that states all the days, and the amount that I have paid this year for daycare so I can claim it on my taxes?

I've heard that you can claim daycare expenses



And I thought it would be allright if I started a tax question thread, since it's that time of the year.

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[3lilpigs]

Everyone's tax situation is different.....I'd ask a tax accountant or someone along that line. Don't go by advice posted online. (no offense meant to anyone).

I've never heard of being able to claim daycare expenses.

[jasmine]

I found something
http://www.ehow.com/how_5846582_clai...utm_source=ask

I was pretty sure you could, I'll just have to get a YTD statement from my work, since I don't save any of my reciepts.

[pepperpot]

I've heard of day care expenses being claimed, but I think there are certain guidelines and percentages, etc. that must be met. I believe it's like medical expenses, they can be claimed/deducted if they are a certain percentage of your salary and meeting a minimum., but that is a "tax accountant" question.

*If there is a line on the form for it, there must be an explanation in the booklet.*

[dangerousfem]

I do taxes privately..and last year worked for a tax company preparing tax returns... many people claimed their child care expenses...

here ya go.. this should help.
http://www.irs.gov/pub/irs-pdf/p503.pdf

Individuals who pay for day care expenses for their children or disabled adult dependents may be eligible for a federal tax credit of up to 35% percent of the cost of day care.

To qualify for the child and dependent care credit, you must have a dependent child age 12 or younger, or a dependent of any age who cannot care for himself or herself. You calculate your tax credit on Form 2441 (PDF) and Instructions for Form 2441 (PDF).

In order to claim this tax credit, you must meet each of following criteria:

* Your child or dependent must meet certain qualifications,
* Your daycare provider must meet certain qualifications,
* You must have earned income,
* The care provided must enable you to work or to look for work, and
* You must reduce your eligible daycare expenses by any amounts provided by a dependent care benefits plan through your employer.

Qualifying Child or Dependent
The child must be your dependent, age 12 or younger. If your child is age 13 or older, the child must be physically or mentally unable to care for herself or himself. You may also claim adult daycare expenses for a dependent age 13 or older or for a spouse, if that person is physically or mentally unable to care for himself or herself.

You must provide a home for the dependent, and pay over half the costs of maintaining a home for your dependent. You cannot claim childcare or adult daycare expenses for someone who does not live with you.

Normally, the child must also be your dependent. If the child is not your dependent solely because you allow the non-custodial parent to claim the child as a dependent, then you may be able to claim the child care credit even though you aren't claiming the child as your dependent. Only the custodial parent can take the child care credit, however. (See Publication 503 for more details about this exception.)
Qualifying Daycare Provider
The person who provides childcare or adult daycare services cannot be one of your dependents. For example, you cannot pay your daughter to take care of her younger brother. If the daycare provider is your son or daughter, he or she must not be your dependent and must be age 19 or older by the end of the year. Also, your daycare provider must provide you with his or her name, business name (if applicable), address, and either Social Security or Employer Identification Number. Additionally, you must report this information on Form 2441 in order to claim the Child and Dependent Care Tax Credit.

How Much is the Child & Dependent Care Worth?
The child and dependent care tax credit is worth 20% to 35% of your day care expenses. The percentage of the credit depends on your adjusted gross income. A full chart of the percentage rates is found in Publication 503.


www.irs.gov/taxtopics/tc602.html

[dinosmom]

Just an FYI, the daycare has to be LICENSED in order for you to claim it as a deduction. At least thats how it use to be.

I am self employed and HAVE to use an accountant. I would be so lost without him. LOL

[dangerousfem]

It doesn't have to be licensed.. but they have to supply their ss# or their EIN (Employer Identification Number)

The person who provides childcare or adult daycare services cannot be one of your dependents. For example, you cannot pay your daughter to take care of her younger brother. If the daycare provider is your son or daughter, he or she must not be your dependent and must be age 19 or older by the end of the year. Also, your daycare provider must provide you with his or her name, business name (if applicable), address, and either Social Security or Employer Identification Number. Additionally, you must report this information on Form 2441 in order to claim the Child and Dependent Care Tax Credit.

[Heidi]

I have claimed my daughters daycare and afterschool programs every year on our taxes. The daycare should automatically give you a total paid along with their tax ID # or SSN if it's a private daycare. If not, just ask. It's not their responsibility to provide you with this, it's your responsibility to keep track, but as a courtesy most do it.