Daycare and taxes ?

[hermione]

We've never paid for daycare before. Is there a tax reason for me to save receipts? C only goes part time and currently I only work part time if those things matter.

[mrsjrd23]

If you have a dependent savings account taken out of paychecks (up to 5K per year), you will need to submit receipts at tax time our thoughout the year as you have enough money in the account to be reimbursed.

[tealblue]

Do you have a flex spending account for daycare costs? If so, you'll need the receipts (or a statement) to get reimbursed from that.

If not, you can take the Child & Dependent Care credit on your taxes. So you'll need the total spent on daycare.

[SJ]

Do you have/use a Childcare FSA?

Do you take the appropriate deductions/credits on your tax return? Child Tax Credit, Child & Dependent Care Credit...

You will need your provider's tax ID number and yes, I would save receipts.

[Ashley&Scott]

I didn't need a receipt for our dependent care savings account, my DCP signed the recurrent reimbursement form which listed the weekly rate & their tax ID number.

I only ask for one receipt per year, usually in the beginning of January listing the total paid the previous year. I give it to our CPA along with all of our other tax documents.

[hermione]

No, we don't have a child care FSA.

[Yankees21]

Usually at the beginning of the year a daycare provider will give you a printout of what you paid for the previous year and their tax id number so you can use that to claim the childcare credit if you qualify.