Claiming childcare expenses when wife not working
#1
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Claiming childcare expenses when wife not working
I've heard mixed things about this. Some people I know claim childcare expenses (my son is in daycare three days per week) on their tax returns (California) when their partner does not work. The IRS states this is so the partner can work or look for work.
http://taxes.about.com/gi/o.htm?zi=1...503/index.html
Thoughts?
The tests show the below, which we meet, however both parents do not work.
* Your child or dependent must meet certain qualifications,
* Your daycare provider must meet certain qualifications,
* You must have earned income,
* The care provided must enable you to work or to look for work, and
* You must reduce your eligible daycare expenses by any amounts provided by a dependent care benefits plan through your employer.
http://taxes.about.com/gi/o.htm?zi=1...503/index.html
Thoughts?
The tests show the below, which we meet, however both parents do not work.
* Your child or dependent must meet certain qualifications,
* Your daycare provider must meet certain qualifications,
* You must have earned income,
* The care provided must enable you to work or to look for work, and
* You must reduce your eligible daycare expenses by any amounts provided by a dependent care benefits plan through your employer.
#2
Re: Claiming childcare expenses when wife not working
I was told we couldn't deduct unless we were both working.
#3
Re: Claiming childcare expenses when wife not working
You've got to be looking for work, so if your applying for jobs, you'd be eligible is how I'd read it, but sounds like you also must have some income, so probably need one parent to be working even if part time?
#4
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Re: Claiming childcare expenses when wife not working
Well one parent works (me) but my wife does not. I guess its how closely defined / audited the "looking for work" part for her is.
#5
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Re: Claiming childcare expenses when wife not working
Work also includes actively looking for work. However, if you do not find a job and have no earned income for the year, you cannot take this credit.
To claim the credit, you (and your spouse if filing jointly) must have earned income during the year.
#6
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Re: Claiming childcare expenses when wife not working
Thanks for the replies. My tax refund is looking smaller by the minute