Daycare and Taxes

emy730

I know that daycare costs can be tax deductible, but does anyone know if there's a limit to how much you can write off?

Do you have to supply a receipt of some sort?

mamaloaf

You must report the name, address, and taxpayer identification number (either the social security number, or the employer identification number) of the care provider on your return.

You should be paying him/her via check so that would serve as your receipt upon audit.

PregsMcSnoozalot

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

ghostof5letters

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

I don't think you can since she doesn't have a formal compensation package and you're not paying her. 

From the website above:

1. The payments for care can’t go to your spouse, the parent of your qualifying person or to someone you can claim as a dependent on your return. Care payments also can’t go to your child under the age of 19, even if the child isn’t your dependent.

mamaloaf

^exactly

1982Babies

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

1.  Keep all organic containers.
2.  Replace with cheap foods.
3.  ??
4.  Profit.

mary1217

1982Babies said:

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

1.  Keep all organic containers.
2.  Replace with cheap foods.
3.  ??
4.  Profit.

I'm with @1982Babies

In the extreme you could buy one of those lock boxes that fit around the thermostat.  We had one at an office I used to work at and I held a key.

emy730

Thanks for the answers! 

Can you write off anything additional to FSA money?

bullybutt

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

She needs to be footing the bill for her own damn groceries if she has to have special stuff. Designate a shelf in the fridge and the panty for her stuff. 

mamaloaf

Paying providers through FSA is a good idea because it comes out pre-tax. That's how I do it. If you do it that way, it'll work it's way back into the calculation of your tax credit, I believe.

Hilee18

So if I pay my non dependent mother for childcare, I can claim that, correct? 

ghostof5letters

Hilee18 said:

So if I pay my non dependent mother for childcare, I can claim that, correct? 

Only if she claims the money as income and is paying income taxes. Under the table cash transactions will get you both in trouble with the IRS. 

PregsMcSnoozalot

bullybutt said:

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

She needs to be footing the bill for her own damn groceries if she has to have special stuff. Designate a shelf in the fridge and the panty for her stuff. 


Part of the "deal" for her to stay with us and take care of the baby is that we pay for her room and board. We don't give her any money, but we essentially eliminate her living expenses. Wait a sec, do you think I can claim HER as a dependent??!

[Deleted User]

PregsMcSnoozalot said:

bullybutt said:

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

She needs to be footing the bill for her own damn groceries if she has to have special stuff. Designate a shelf in the fridge and the panty for her stuff. 

Part of the "deal" for her to stay with us and take care of the baby is that we pay for her room and board. We don't give her any money, but we essentially eliminate her living expenses. Wait a sec, do you think I can claim HER as a dependent??!

Maybe set a budget for her for groceries as part of the room and board? Anything beyond the budget she needs to cover?

mamaloaf

PregsMcSnoozalot said:

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

She needs to be footing the bill for her own damn groceries if she has to have special stuff. Designate a shelf in the fridge and the panty for her stuff. 

Part of the "deal" for her to stay with us and take care of the baby is that we pay for her room and board. We don't give her any money, but we essentially eliminate her living expenses. Wait a sec, do you think I can claim HER as a dependent??!

Nope

She didn't live there every day of 2014, right? (I hope not...)

Qualifying Relative

Many people provide support to their aging parents. But just because you mail your 78-year-old mother a check every once in a while doesn’t mean you can claim her as a dependent. Here is a checklist for determining whether your mom (or other relative) qualifies.

• Do they live with you? Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
• Do they make less than $3,950? Your relative cannot have a gross income of more than $3,950 and be claimed by you as a dependent. 
• Do you financially support them? You must provide more than half of your relative’s total support each year. 
• Are you the only person claiming them? This means you can’t claim the same person twice, once as a qualifying relative and again as a qualifying child. It also means you can’t claim a relative—say a cousin—if someone else, such as his parents, also claim him.

PregsMcSnoozalot

mamaloaf said:

PregsMcSnoozalot said:

PregsMcSnoozalot said:

Hmmm, do you guys think I can write off the added expenses we've incurred since having my mom move in with us to take care of LO while I'm at work?  She's eating us out of house and home (only organic!!) and running the air conditioner non-stop.  Our monthly bills are WAY up!

She needs to be footing the bill for her own damn groceries if she has to have special stuff. Designate a shelf in the fridge and the panty for her stuff. 

Part of the "deal" for her to stay with us and take care of the baby is that we pay for her room and board. We don't give her any money, but we essentially eliminate her living expenses. Wait a sec, do you think I can claim HER as a dependent??!

Nope

She didn't live there every day of 2014, right? (I hope not...)

Qualifying Relative

Many people provide support to their aging parents. But just because you mail your 78-year-old mother a check every once in a while doesn’t mean you can claim her as a dependent. Here is a checklist for determining whether your mom (or other relative) qualifies.

• Do they live with you? Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
• Do they make less than $3,950? Your relative cannot have a gross income of more than $3,950 and be claimed by you as a dependent. 
• Do you financially support them? You must provide more than half of your relative’s total support each year. 
• Are you the only person claiming them? This means you can’t claim the same person twice, once as a qualifying relative and again as a qualifying child. It also means you can’t claim a relative—say a cousin—if someone else, such as his parents, also claim him.

whomp waaah, she definitely doesn't qualitfy