Saturday, May 22, 2010

Child care credit question?

Last year my husband worked, and I went to school full time in the Fall. When we both had to be away from my son, I dropped him off to my mother's house 2 days a week. I paid her $50 weekly b/c that was all we could manage.. can we still get the child care credit?

Child care credit question?
Yes you can. You will have to get your mother's Social Security number to claim the money you paid her on the tax return, but you can indeed use it.


BUT, if you have your taxes prepared by someone else, make sure that you NEED the credit before you pay for the extra form. If you already have zero tax, then don't let them charge you for that additional work that they don't need to do. If you don't understand what that means, they should. You are not REQUIRED to claim credits on your return, so you don't have to do this if you don't need/want to.


Hope this helps!
Reply:You can fill out the Form 2441 to get the credit. Just remember that if you claim the credit, you must include your mother's name, address, and social security number.





If you claim it, you just told the IRS that she is making $50/week. The IRS will then make sure she is properly claiming the $50/wk on her taxes as income.
Reply:As long as he was working and you were in school, yes you could take a child care credit for the expenses.
Reply:Give your mom a form w-10 to fill out. It will remind her that the $50/week you paid is $2500 of taxable self-employment income to her.

balsam

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