@ daycare costs and taxes

[seeyalater52]

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Can any non-newbie parents help me understand what information I need to get from our daycare provider(s) to file for the 2021 child and dependent care credit?

Our current daycare provided us with an invoice listing our payments but our old daycare doesn’t seem to want to provide anything. Typically it wouldn’t matter too much as we would max out the credit with just payments for the period we were at our new center, but with the increased credit amount for 2021 it would be helpful to include all of our qualifying daycare expenses. What information do we need and if they won’t give it to us is there any other way to get it? Obviously I can look at bank records to see what we paid but I’m wondering if there is other information that I don't have on hand but could hunt down if need be.

Edit: it may not matter for this answer, but in case it is relevant, we did not do the dependent care FSA for 2021 as we weren’t sure during open enrollment if we would be able to send the baby to daycare due to covid.

[Cappy]

Our daycares (we've been at 4 providers) always provided a year end statement that included their EIN and address. If you can't get the statement at least try to get their EIN and save your bank records.

[smock]

I think all you need is their taxpayer identification number and the amount you spent.

Here's an article about it:

www.cnet.com/personal-finance/the-child-care-tax-credit-doubles-this-year-heres-how-to-claim-up-to-16000/

[ny96]

You only need the taxpayer ID, address, and phone number, no receipts needed.

[Susie]

Our daycare provides (on request) signed receipts for each monthly payment, that include the name, address, and EIN of the daycare, plus the amount and specification that it's for childcare tuition.

More conveniently, my DD's before/after/vacation care provider conveniently provides an end of year statement with all that info.

[ellipses84]

We’ve moved a lot so we’ve had a lot of daycares and they’ve all provided a year end statement either automatically or upon request. If you can’t get it, keep your bank records of payment for a potential audit. All you need is the name, address and EIN to pay your taxes. When I had an FSA there was a form I had to fill out that they had to periodically sign for reimbursement. You could also try typing up your own statement in letter format with their name/address and ask them to sign/ fill in their EIN. They may be more likely to do it if it’s hardly any work for them.

Is it a daycare center or a home provider? The only reason I could see resistance is if it’s an individual who is not reporting their income correctly.

[seeyalater52]

Jan 20, 2022 13:22:51 GMT -5 ellipses84 said:

We’ve moved a lot so we’ve had a lot of daycares and they’ve all provided a year end statement either automatically or upon request. If you can’t get it, keep your bank records of payment for a potential audit. All you need is the name, address and EIN to pay your taxes. When I had an FSA there was a form I had to fill out that they had to periodically sign for reimbursement. You could also try typing up your own statement in letter format with their name/address and ask them to sign/ fill in their EIN. They may be more likely to do it if it’s hardly any work for them.

Is it a daycare center or a home provider? The only reason I could see resistance is if it’s an individual who is not reporting their income correctly.

It’s a center. They’re definitely licensed and all that but they are a HOT MESS which is why we ended up leaving after 2 months. They basically DGAF about us since we aren’t currently getting care from there.

[seeyalater52]

Thank you all! This is helpful to know what specifically to ask about.

[puppylove64]

You need an Ein, name, address and amount. You can get the amount from your own records. If you used them the previous year, you may already have the EIN on your previous year’s return.

[statgirl]

If they refuse to give you their EIN, here is what TurboTax suggests: ttlc.intuit.com/community/taxes/discussion/what-if-my-childcare-provider-refuses-to-give-me-her-ssn-or-ein-number-can-i-still-claim-what-i-paid/00/515672/amp

I was nervous about this for one of our daycares so I looked it up. I ended up calling them and they gave it over the phone without issue.

[kath16]

Jan 20, 2022 14:30:45 GMT -5 seeyalater52 said:

Thank you all! This is helpful to know what specifically to ask about.

it's a very common request, especially at this time of year, so they should know have their EIN number very handy. 

if they are being shady about it, you might be able to find it from whoever licenses the center (state, county, etc.) or from the corporate HQ if it's a franchise.