How to Deduct Home Child Care Expenses
Whether you work from home, are looking for a job or hire someone to come to your home and look after your children while you are at work, you may qualify to deduct your child and dependent care expenses with the Internal Revenue Service. Paying someone to care for your child can add a lot to your overall budget, so deducting those expenses on your taxes can be a helpful boost to your income, especially if you get a refund each year.
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Instructions
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Document the child(ren)'s age. Children being cared for must be under the age of 13 or dependents (children or spouse) unable to care for themselves.
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Pay the cost of child care so you can work or look for work. The deduction is only available on expenses already paid. Keep your receipts and contracts for each tax year.
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Take the qualifying person test offered in the IRS instructions for Child and Dependent Care Expenses. This flow chart will help you determine if your child and expenses qualify for the deduction.
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Obtain the taxpayer identification number or Social Security Number of the person watching your children or dependent. You may have to pay household employment taxes if the person works in your home.
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Claim the child on your tax return. You can only claim the deduction if you can claim the child on your taxes.
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Earn income during the year. To qualify, either you or your spouse must earn some income through the year. Your filing status must also be single, head of household, qualifying widow(er) with dependent child or married filing jointly.
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File Form 1040 or 1040A with the IRS. Form 1040EZ does not qualify for this deduction.
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