Can I Write This Off?

Can I write off childcare during work hours?

TL;DR

Yes, you can write off childcare expenses incurred during work hours if they qualify under the Child and Dependent Care Credit.

Detailed Answer

Childcare expenses can be deductible if they are necessary for you to work or look for work. These expenses qualify for the Child and Dependent Care Credit, which is a non-refundable credit. To qualify, the care must be for a child under 13 years old, and you (and your spouse, if filing jointly) must have earned income. The care provider cannot be a spouse, the parent of the child, or a dependent. The credit is calculated based on a percentage of the expenses, which is subject to income limits.

Where to Put It on the Tax Form

Form 2441, Child and Dependent Care Expenses, attached to Form 1040.

Real World Example

A single parent works full-time and pays a daycare center $5,000 annually to care for their 4-year-old child. They can claim a portion of this expense as a credit on their tax return.

Calculation Required

A calculation is required for this deduction.

The credit is calculated as a percentage of the qualifying expenses, up to a maximum of $3,000 for one child or $6,000 for two or more children. The percentage ranges from 20% to 35%, depending on your adjusted gross income (AGI).

Audit Risk & Documentation Tips

Keep records of payments made to the childcare provider, including receipts and the provider's tax identification number. Be prepared to show that the expenses were necessary for you to work or look for work.

IRS Reference

IRS Publication 503: Child and Dependent Care Expenses

Relevant Industries

Working ParentsFreelancersEmployees

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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