Child care tax credit

EveryNameIWantIsTaken

I figured here would be the place to ask this.  What information do we need from ds's former daycare to file for the tax credit.  I know we need their EIN and how much we paid.  Is there any other information?  Ds's former daycare has become a joke and no one in the office seems to know anything.

umbcpt

Yes, either a tax ID # or a SSN and the total amount you paid.  If you did the $5000 of pretax dollars from Dependent Flex Spending, then you will deduct nothing further.  If you did not do the FLEX spending then you will get to deduct $3000.

EveryNameIWantIsTaken

I've always wondered how a tax credit works.  Does this mean if we owe nothing on our taxes, we get that amount as a refund?

umbcpt

I don't think you would get a full $3000 as a refund if you truly broke even otherwise, but you would get whatever you would have been taxed on that $$$.  For example, if it takes you earning $4000 of gross money to net the $3000, then you would get $1000 in a refund.  Does that make sense?