Child Care Expenses Question

[Ashleybs]

I understand that you can deduct child care expenses up to a certain amount providing that you provide information about the caretaker.

I send my son to a Church Preschool/Mother's Day Out and pay $75 a month for him to go two days a week so that I can work. Since this is a Church program am I able to deduct this? Thanks!

[Brian EA]

Max of $3000 per kid ,not to exceed $6000 per return with more than one kid,
must provice Fed ID # Name and address and amt paid.

[Ashleybs]

So even though it is a preschool/mother's day out and not an actual day care center I can deduct it?

[BP.]

Max of $3000 per kid ,not to exceed $6000 per return

Brian, probably what you intended to convey is that the $3,000 max applies if there's only one qualifying person; if more than one qualifying person, it's not $3,000 per, but $6,000 total. TTB 11-3 & 4.

[GIMoe]

Yes...

So even though it is a preschool/mother's day out and not an actual day care center I can deduct it?

...as long as they have a valid EIN.

[BP.]

...as long as they have a valid EIN.

Don't even need that, if it is a tax exempt organization. Just write "tax exempt" in EIN field. See Form 2441 instructions. Probably fairly safe assumption that church is tax exempt.

[GIMoe]

Form 2441

Don't even need that, if it is a tax exempt organization. Just write "tax exempt" in EIN field. See Form 2441 instructions. Probably fairly safe assumption that church is tax exempt.

Excellent point, and in this situation (looking again at the original post) I would agree that it is certainly a safe bet that this is a duly sponsored church activity/group that qualifies for tax-exempt status.

However, I will say that just because the daycare is being performed inside of a church does not make it tax-exempt. I've seen daycare providers rent out rooms from a church to use for their daycare business. In that case they would certainly need to provide their EIN for the Form 2441.

[Lion]

Child Care

The Child Care Credit is for expenses you pay in order to work (full time student exemption, etc., but basically so both or single parent can work). So, if you use a Mother's Day Out program while you work two days a week, you have expenses probably eligible for the Child Care Credit. If you use a Mother's Day Out program so you can have a day out, then you do NOT have eligible expenses. As you work through the form, you'll see the requirements.

And, although a church-based program might be tax-exempt, it probably has a tax ID number since it uses one to pay its employees. Unless its clergy and staff and child care teachers are all volunteers, the church should be able to give you their tax ID number.