Unregistered 12:06 PM 06-09-2011
I would like to know if there is a maximum dollar amount that parents can claim on their taxes each year for childcare? I am a LHP and I would like to trade childcare for carpentry work with one of my parents later this year. They have 2 children in my care and will soon be at the $3,000 mark. I have been told that $3,000 is the most that you can clain on your taxes. Is this true? We would like to trade services, even though he does not do this as a business it is his hobby. He is not sure about doing this because he does not want to miss out on the tax deduction. I know that if we did trade I could not claim deductions for the children while we do this. Any advise on this would be great!
daycare 12:16 PM 06-09-2011
I have a parent that I do this with and I dont claim any money as do they. However, they do own a business, its not a hobby.
I think in this case i would not do an actual exchange. Pay the parent for their services and let them pay you
Meyou 08:09 AM 06-10-2011
My parents claim the full amount I charge them. When I was working outside the home I claimed over $10 000 2 years in a row when I had two in daycare. I'm in Canada.
TomCopeland 09:43 PM 06-10-2011
Parents in the US can claim up to $3,000 per year per child (up to $6,000 total) towards their child care tax credit. The maximum tax credit is $1,050 for one child and $2,100 for two or more children.
Unregistered 12:24 PM 02-01-2013
I purchased an above ground pool. The daycare only uses it 2x per week in the Summer, can I claim a portion of the purchase? What about a portion of the installation, and electric? thank you!
TomCopeland 04:12 PM 02-01-2013
Originally Posted by Unregistered:
I purchased an above ground pool. The daycare only uses it 2x per week in the Summer, can I claim a portion of the purchase? What about a portion of the installation, and electric? thank you!
Yes, the pool is an ordinary and necessary expense for you. You must depreciate the pool over 15 years as a land improvement. You can deduct the electric bill as well. I'd measure how often you use the pool for business vs. personal use and use that percentage against your costs, rather than using your time-space %.
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