🚨 BREAKING NEWS: Police were recently called to a local daycare center. According to eyewitness reports, several children were resisting a rest after lunchtime. Unreal! 😱
We’ve talked about the crazy cost of child care more than once. This time, instead of the usual vent sesh, we’ll show you how to take advantage of a child care tax break! 💸
Here’s Five Fast Facts on deducting child care expenses:
- 🚼 Cash for Care - Did you know there are more kid-related tax breaks aside from the standard child tax credit? If you spent money on child care in 2024, you could be eligible for the Child and Dependent Care Credit. If you have older dependents living in your home, care expenses for them may also apply.
- ✅ Checking Boxes - You may be eligible for the Child and Dependent Care Credit if you paid someone else to care for your child or dependent while you worked, looked for work, or attended school. Money spent on child care, daycare, babysitting, and after-school programs all count. Children have to be younger than 13 and dependents have to live with you for at least six months out of the year.
- 🤱 Live-in Love - If a family member takes care of your kids and you pay them, you can claim those payments as well. If your caretaker lives in your home, you can still go after the credit. Just make sure you don’t claim the caretaker as a dependent.
- 💜 It Depends - As long as your dependent lives in your home for at least eight hours a day, payments to qualified care centers or related services are eligible. Both before- and after-school care also qualify as long as you’re working, looking for work, or attending school while your kiddo is there.
- ❌ Leave These Out - What expenses aren’t eligible under this credit? You can’t include payments related to private schools (including kindergartens) or overnight camps. If your dependent is an adult and you pay for their retirement home, that won’t count either.
🔥Bottom line: Figuring out if you qualify for tax credits can feel like a full time job. Things aren’t always cut and dry, so it’s best to run things by a tax professional before you officially file. Better safe than sorry!
Are you deducting child care expenses on this year’s taxes?
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