If you pay for childcare, so that you can work or look for a job, you may be able to deduct those expenses on your federal tax return. Here’s what the IRS wants you to know:
- You can only deduct expenses for the care of a qualifying dependent, such as a child under age 13.
- You must be paying for care that allows you or your spouse to work.
- Qualifying care includes home care, daycare, or a day camp. Overnight camps, summer school tutoring, or care by other dependents do not qualify.
- You must have earned income in the year that you incur childcare expenses. The expense limit is $3,000 for one qualifying dependent or $6,000 for two or more.
For more information about deductions for dependent care, visit IRS.gov or consult a qualified tax advisor.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov[8]
[8] IRS.gov, January 30, 2020
