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Daycare and Taxes>Tax Deduction For My Children
angelamodglin 05:38 AM 01-03-2012
I was wondering since I have two children under 12 years still can I write them off as a daycare expense. I have my own daycare but my own kids cause me to be 2 kids short from being full. Can I write them off since I am losing money because of them. Its kind of like paying for daycare in a way.
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KEG123 07:49 AM 01-03-2012
No you cannot.
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TomCopeland 09:13 AM 01-03-2012
Originally Posted by angelamodglin:
I was wondering since I have two children under 12 years still can I write them off as a daycare expense. I have my own daycare but my own kids cause me to be 2 kids short from being full. Can I write them off since I am losing money because of them. Its kind of like paying for daycare in a way.
Nope. You should have thought about this before you had children
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Heidi 12:21 PM 01-03-2012
Originally Posted by TomCopeland:
Nope. You should have thought about this before you had children
lol @ Tom....

I am pretty sure they ARE still tax deductions, just not business deductions.

You could always pay yourself daycare, then deduct them as dependent expenses, but then you have to claim the daycare income!!!
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TomCopeland 01:10 PM 01-03-2012
Originally Posted by bbo:
lol @ Tom....

I am pretty sure they ARE still tax deductions, just not business deductions.

You could always pay yourself daycare, then deduct them as dependent expenses, but then you have to claim the daycare income!!!
In order to claim a child care tax credit for your own child, you have to pay someone other than a family member. So paying yourself (or having your husband pay you) won't work.
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Heidi 01:11 PM 01-03-2012
Originally Posted by TomCopeland:
In order to claim a child care tax credit for your own child, you have to pay someone other than a family member. So paying yourself (or having your husband pay you) won't work.
Tom, I hope you know I was kidding!

I also hope I am not wasting your valuable time playing...
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TomCopeland 01:19 PM 01-03-2012
Although I very much like kidding myself and appreciate it in others, I wrote what I did because I didn't want anyone else reading this to be mislead.
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Jennifer91 08:54 AM 01-15-2012
You can't claim them, but has anyone here looked into paying your children. I found this website that talks about it.

http://www.bargaineering.com/article...-business.html
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Countrygal 02:42 PM 01-15-2012
Originally Posted by TomCopeland:
Nope. You should have thought about this before you had children
Yeah, children cause a lot of headaches, but then they ARE a tax deduction!
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Blackcat31 03:07 PM 01-15-2012
Originally Posted by Jennifer91:
You can't claim them, but has anyone here looked into paying your children. I found this website that talks about it.

http://www.bargaineering.com/article...-business.html
Tom has said the following on his blog about hiring our own children as helpers:

"Hiring Your Own Children

One note about hiring your own children: If you hire your own child who is age 18 or older you still must withhold and pay Social Security/Medicare taxes and withhold federal and state income taxes. But you won't owe federal unemployment taxes. Contact your state for your state rules. As a result, I believe it makes more sense to give this child gifts, unless you want your child to learn what it's like to be an employee.

If your own child is under age 18 there is no Social Security/Medicare taxes, no state or federal tax withholding and your child care earn up to $5,700 and not owe any federal income taxes. Therefore, there is a tax benefit to your family in that you can deduct the wages you pay and the child probably won't have to pay any taxes. As a result, you may want to treat your younger children as employees."


http://www.tomcopelandblog.com/2011/...ve-or-not.html
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Tags:claiming provider children, deduction - provider children, provider - own child, tom copeland
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