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Youll need to attach two forms to the standard Form 1040: Form 2441 and Schedule 3. IRS Form 2441 has a worksheet that can help you determine the exact credit amount youre eligible for. Youll then enter the result on line 2 of Schedule 3.
To claim the credit, you (and your spouse, if youre married) must have income earned from a job and you must have paid for the care so that you could work or look for work. You can claim from 20% to 35% of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people (tax year 2023). The Ins and Outs of the Child and Dependent Care Credit TurboTax Family TurboTax Family
The IRS may ask for verification of childcare expenses. Not every taxpayer will be audited but filers must be prepared to show proof of expenses and that underlying information (i.e., who care costs were paid to) was reported correctly. IRS Form 2441: What It Is, Who Can File, and How to Fill It Out investopedia.com form-2441-child-and-de investopedia.com form-2441-child-and-de
In addition to the above, your child care expenses must meet all of the following criteria: your child care provider must be someone whom you cant claim as a dependent -- this may include a licensed day care provider, preschool, or on-the-books nanny but cant include anyone you pay under the table. Tax Relief for Child Care Expenses | Nolo nolo.com legal-encyclopedia child-care- nolo.com legal-encyclopedia child-care-
These payments may be qualified childcare expenses if the family member babysitting isnt your spouse, the parent of the child, your dependent, or your child under age 19, and if you otherwise qualify to claim the child and dependent care credit. Child and Dependent Care Credit Flexible Benefit Plans 4 IRS (.gov) faqs childcare-credit-other-credits IRS (.gov) faqs childcare-credit-other-credits
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The screen on which the initial entry of dependent care expenses is entered is the Form 2441, Part I screen. This screen is specifically designed for entering information related to dependent care expenses when filing taxes.
Since the child care services are being provided by a person under 18 years of age who is related to you, you are not entitled to make a claim for child care expenses.