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Can I Deduct Childcare From Taxes?
Here’s what the CPA’s have to say
According to the IRS, you can deduct any expense that is directly or indirectly related to your profession. However, when it comes to deducting childcare expenses, you can simply claim the Child & Dependent Care Credit.
For example, Amy sends her 3 year-old kid to a nursery school while she works. The nursery school provides lunch and a few educational activities as part of its preschool childcare service. The lunch and educational activities are incidental to the childcare, and their cost can't be separated from the cost of care. So, she can count the total cost when she figures the credit.
Similarly, in this case, Donnya is a Mom Influencer who creates content on parenting and as a social media influencer, she often has to travel for work by leaving her kids in daycare or after school childcare. So, she can claim the Child & Dependent Care Credit to deduct the cost of daycare from her taxes.
Can I deduct childcare from taxes?
Tax deductions for childcare are easily available under the Child and Dependent Care Credit.
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Can you claim childcare as a business expense?
According to the IRS, to count as a deduction, an expense must be ordinary and necessary. Childcare is generally considered a personal expense for which you can possibly claim the child & dependent care credit under the right circumstances. However, if you are a Mom Influencer, you can claim a variety of expenses from your taxes.
Similarly, if you are a part of the social media influencing industry, you can deduct the cost of items that feature in your content.
Generally, any professional who pays for the care of the child/dependent, can claim childcare. Some of the professions include:
- Daycare owners
- Delivery Driver
- Beautician
- Content creators
- Musician
- Nursery teachers
- Model
- Direct sellers
- Doctors
- Babysitters
Who can claim childcare as a tax deduction?
In order to claim the Child & Dependent Care Credit, you need to prove that you pay someone to care for one or more qualifying persons in order for you to work or look for work, and your income level is within the income limits set for the credit.
If you are married, you must file a joint return to claim the credit. However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still claim the credit.
Frequently asked questions
FAQs
Can a doctor or pediatrician deduct the cost of toys for children?
Can a daycare owner deduct the cost of child care?
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