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Ask the Expert: What Types of Childcare Can I Take Off My Taxes?


As you get ready to file your taxes, you might be wondering what types of childcare are tax deductible, including nanny and babysitting expenses, day camp, overnight camp, summer school, and other daycare programs. Here, a federally licensed tax expert offers her advice.

 

nannyHow do I know if my childcare expenses are considered tax deductible?

If your child is under age 13 and lived with you for more than half of the tax year, then you may be able to take the credit for child and dependent care expenses only when you paid someone to care for your child so you could work or look for work during the year.

You may include the cost of a day camp, but the cost of an overnight camp, summer school, or a tutoring program is not allowed. The dependent care benefits include the fair market value of care in a daycare facility provided by your employer and pre-tax contributions you made under a dependent care flexible spending arrangement (FSA).



Also, the qualified expenses include amounts paid for household service, like cooking and cleaning, when the services were needed to care for your child.

Please note that child support payments are not qualified expenses.

 

—Emily Seo, EA, is a federally licensed tax practitioner at Tax Pro Team in Flushing. The Tax Pro Team, which also includes a CPA and former IRS agent, specializes in personal and corporate income tax returns and audit issues. Call 718-463-1040 for a free consultation.


Also See:

Should Married Couples File Taxes Jointly or Separately?

 

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