Daycare expense credit allowed if one of the spouses earned minimum income and did not pay taxes?
I paid $2000 for daycare expense for our daughter. My spouse works partime, earned $2000 however did not pay taxes. Can I claim the childcare tax credit in this situation. I did pay my taxes though.
Public Comments
- Not if your wife was paid under the table.
If she received a W-2 or 1099 for her income, then yes you can take the credit to the extent of her earned income. Her income must be legitimate and reported on your 1040 to count for child care credit purposes.
- The real issue here is that it appears that you filed "Married Filing Separate". At least you implied that by saying that your spouse did not pay taxes.
As a married person, you typically cannot take the credit unless you file Married Filing Joint. And both of you must have earned income on that return.
See IRS Pub 503 for more information.
http://www.irs.gov/pub/irs-pdf/p503.pdf
