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Daycare tax return question...

jasonlovessarajasonlovessara
in Pennsylvania Babies

How much money do you get back at tax time for having your child in a daycare... is it a certain %?  My BIL told me that you get a third of what you pay ... I found that really hard to believe.  I just wanted to know what your experiences have been.

Thanks!

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Re: Daycare tax return question...

  • KeriMichelleKeriMichelle
    I've been wondering the same thing! This is what I found:

    The credit is a percentage, based upon your adjusted gross income, of the amount of work?related child and dependent care expenses you paid to a care provider. There is a maximum dollar limit of dependent care expenses you can use for this credit. The amount of the maximum dollar limit depends on the taxable year and the number of qualifying individuals. These dollar limits must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from your income. Refer to Publication 503, Child and Dependent Care Expenses, for additional information.

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  • rlthomas7rlthomas7

    From what I understand, you can take a tax credit at the end, or you can participate in a pre-tax employer plan. You can't do both. Although maybe if you do the maximum through the pre-tax plan, which I think is $5000, you can claim the remainder.

    We participate in the pre-tax plan through my work. That said, we got $500 back as part of the stimulus plan for having a child in daycare.

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