Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 272 August 20, 2004
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 272 August 20, 2004 |
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 » From: San Antonio, TX Dear TaxMama: We have 2 children in daycare. The 10 month old costs $600.00 per month and the 10 year old costs $250.00 per month. Do we get to deduct from our taxes all of the daycare costs or only a portion (percentage) of the total? Scott  Hi Scott, Actually, to be perfectly honest, you don't get to deduct any of those costs. However, you will get a tax credit for some of them. Take a look at Form 2441, the Child and Dependent Care Credit form. Read the instructions carefully. If you provide IRS with the name and tax ID number of your caretakers, you will get a credit of up to $600 for each child. A credit is a direct reduction of your income taxes. Make sure you enter your children's names and Social Security numbers on the form (and on your 1040) exactly the same way they appear on their Social Security cards. That will avoid the usual correspondence that holds up refunds. You'd be surprised how many people never really call their children by their given names - and forget what they filled in when they filed for the SS cards. I hope that helps. Best wishes, Eva Rosenberg Your TaxMama  |
 
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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