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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 02-11-2019, 12:55 PM
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Default 2 Questions

1. What is the maximum amount of child care expense a family can claim for 2 children? I have a married couple here that have a bet lol. Mom says $3000 per child..hubby says the whole amount they paid. I have no idea. My CPA does my taxes.

2. What are the deductions per child and adults this year?
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Old 02-11-2019, 01:00 PM
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I have 0 clue about taxes as I too have someone more skilled in the field complete mine as well but I do know this popped up in e-mail not too long ago....

"How Much Is the Child and Dependent Care Credit?

The Child and Dependent Care Credit can be worth from 20% to 35% of some or all of the dependent care expenses you paid. The percentage you use depends on your income.

If your income is below $15,000, you will qualify for the full 35%. The percentage falls by 1% for every additional $2,000 of income until it reaches 20% (for an income of $43,000 or more).

The 20%-35% is taken from up to $3,000 of expenses paid for one Qualifying Person, or from up to $6,000 of expenses paid for two or more Qualifying Persons.

Therefore, the maximum Child and Dependent Care Credit is worth $2,100 (based on 2 or more dependents and $6,000 or more of qualifying expenses).

Before figuring the credit, you must reduce your qualifying expenses by any amount of child or dependent care benefits that were provided by your employer and that you deducted or excluded from your income.

The Child and Dependent Care Credit is not refundable, so it is not worth anything if you owe no income tax."
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Old 02-11-2019, 01:05 PM
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In seriously laughing out loud...I pretty much have no clue what that means. I will show this to the couple and they can try and make sense to see who won the bet.
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Old 02-11-2019, 01:13 PM
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Quote:
Originally Posted by LostMyMarbles View Post
In seriously laughing out loud...I pretty much have no clue what that means. I will show this to the couple and they can try and make sense to see who won the bet.
hey, me either.... I just happen to read it like 10 minutes prior to you posting and thought, "hey! here is the answer she's looking for!" I think.

Bottom line is I think the amount they can claim is really dependent on their income. But who knows... I do NOT understand anything tax related other than pay what I am told to pay by my CPA.

Glad I am not the only one...
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Old 02-11-2019, 01:17 PM
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Lol same. I just keep track of what is paid and turn it in. I have no idea what the parents do with the yearly statements I give them. One mom told me they don't use their childcare total on their taxes. I just work here!!!
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Old 02-11-2019, 03:50 PM
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Default child care tax credit

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Originally Posted by LostMyMarbles View Post
1. What is the maximum amount of child care expense a family can claim for 2 children? I have a married couple here that have a bet lol. Mom says $3000 per child..hubby says the whole amount they paid. I have no idea. My CPA does my taxes.

2. What are the deductions per child and adults this year?
The maximum child care expense you can use towards determining how much credit you will get is $6,000 for two or more children.
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Old 02-13-2019, 09:03 PM
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Default After school program no EIN to give...

My daughter goes to the after school program because she'll put me over in ratio if she comes home after school.

The after school program doesn't have an EIN to give parents. But we do pay for it. It's partly grant funded, and parents pay $100 per month.


How do I claim that dependant care expense?
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Old 02-14-2019, 09:30 AM
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Default dependent care expense

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Originally Posted by hwichlaz View Post
My daughter goes to the after school program because she'll put me over in ratio if she comes home after school.

The after school program doesn't have an EIN to give parents. But we do pay for it. It's partly grant funded, and parents pay $100 per month.


How do I claim that dependant care expense?
Fill out IRS Form 2441. The school program doesn't have an EIN, so you leave it blank on this form.
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