Child Care Expenses

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Child Care Expenses

Child Tax Credit - Partially limited - Carry forward or lost

Asked Tuesday, January 16, 2001 by an anonymous user
Any unused Child Tax Credit cannot be carried forward to future years.
The credit begins its phase-out at Adjusted Gross Income of $110,000 for married taxpayers filing joint returns.
For single taxpayers or those filing as head of household the threshold is $75,000.
For married filing separate returns the threshold is $55,000.
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Child Care Expenses

Household Employee - Schedule H

Asked Friday, December 22, 2000 by an anonymous user
Household employers must file IRS Schedule H to pay the social security and federal unemployment tax and any withheld federal income taxes.
A household employer is not required to withhold federal income tax from a household employee's wages.
Federal income tax withholding occurs if the employee requests and the employer agrees. Household employees include baby sitters, nannies, housekeepers, drivers, caretakers, health aids, private nurses, maids, gardeners, and others who work in or around your private residence as your employees.
Household workers who are under age 18 during any part of the calendar year are exempt from the FICA tax for the entire year even if the wages exceed $1,800 if the household employment is not their principal occupation. A full time student is considered a full time occupation. Workers you get from an agency are not your employees if the agency is responsible for who does the work and how it is done. Self-employed workers are not considered your employees. In the current year, if you paid a household employee cash wages of $1,800 or more in a calendar year, you generally must withhold social security and Medicare taxes from all cash wages you pay to that employee.
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Child Care Expenses

Dependent Care - Flexible spending account reimbursement

Asked Monday, October 30, 2000 by an anonymous user
Your dependent care flexible spending account reimbursement does reduce your maximum child care base expense amounts of $3,000 or $6,000 (2 or more children) claimed on IRS Form 2441.
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Child Care Expenses

Child Care Credit - Alternative Minimum Tax

Asked Friday, October 27, 2000 by an anonymous user
Your child care credit like the other nonrefundable credits can be limited by your "Tentative" Minimum tax not your "Actual" Minimum tax.
Both the Tentative and Actual Minimum tax amounts are reflected on IRS Form 6251.
If you do not understand why your child care credit is being disallowed or limited, speak to your local CPA for an explanation.
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Child Care Expenses

Unpaid child support - Refund withheld

Asked Tuesday, October 24, 2000 by an anonymous user
Under the law, Federal and State agencies transfer to the IRS the names and Social Security numbers of taxpayers who owe amounts due to child support, loans or taxes.
Your tax refund may be withheld if you are delinquent in child support payments or owe on a student loan.
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Child Care Expenses

Private School Tuition

Asked Monday, September 25, 2000 by an anonymous user
Tuition paid for a child in first grade or higher cannot be used as a child care credit or a deduction on your tax return.
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Child Care Expenses

Nursery school payments

Asked Monday, September 25, 2000 by an anonymous user
The amount you pay for nursery school or day-care that enables you (and your spouse on a joint tax return) to earn income can be used to calculate a Child Care Tax credit.
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Child Care Expenses

Child Care Credit - payments to mother who lives with me

Asked Monday, September 25, 2000 by an anonymous user
No. If you claim a relative as a dependent on your tax return, you may not claim a deduction or a child care tax credit for the payments made.
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Child Care Expenses

Can I claim the costs of sending my child to a overnight camp as a credit or deduction?

Asked Monday, September 25, 2000 by an anonymous user
No. The costs of sending a child to a overnight camp cannot be claimed as a child care credit or deduction. Costs for day camp, nursery school, day-care center, or home babysitter for a child under age 13 can be used for a child care credit when both spouses on a joint return earn income or on a single or Head of Household return the taxpayer has earned income.
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Child Care Expenses

Child Care Credit - Babysitter payments

Asked Monday, September 25, 2000 by an anonymous user
If you pay someone to watch your child(ren)under age 13 to enable you (and your spouse if you are filing a joint tax return)to work, then you will be able to claim a Child Care Credit for the costs you pay subject to certain limitations on Form 2441.
You will have to supply to the IRS on Form 2441 the care provider's name, address and social security or EIN number.
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