The Federal Tax Credits Blog

Posts Tagged ‘tax credit daycare’

Question: Daycare deduct as business expense?

If one is self-employed and files a schedule C, can she deduct daycare/babysitting expenses to go to work 100% as a business expense? This would be instead of taking the day care tax credit. Also, then would she need to 1099 her daycare provider/babysitter in order to claim the business deduction?

Answer: While you won’t 1099 the provider, you will be giving them a W-10 to get their SSN so you can put it on form 2441. (UNLESS she does the work at your house, in which case YOU owe her a W-2 and need to file a schedule H to pay the payroll taxes.)

The IRS can then cross check to see that she reported the income on her tax return.

Summertime child care expenses may qualify for a tax credit

Did you know that your summer day care expenses may qualify for an income tax credit? Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Those expenses may help you get a credit on next yearâs tax return.

Making the most of the Childcare Tax Credit (Childcare now making it work briefing paper) …

Child Care Tax Credit