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05mommy09
Family of 5!
Member since 5/05 15364 total posts
Name:
<3 Mommy <3
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Daycare & taxes
My FIL does our taxes and when I gave him our end of the year statement for childcare costs- he told me we fell into a tax bracket where we could not claim it...(He said we made too much $$$)
I know there are people making plenty more than DH and myself- so I know this can not be true...
Can anyone help me with this- or give me some info I can send to FIL..
TIA
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Posted 1/21/08 8:32 AM  |
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ddunne2
LIF Adult
Member since 7/05 4189 total posts
Name:
Doreen
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Re: Daycare & taxes
Try this:
Daycare Credit
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| Posted 1/21/08 9:08 AM |
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Stacey1403
Where it all began....
Member since 5/05 24065 total posts
Name:
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Re: Daycare & taxes
I doubt that is true. All the parents at my Day care use it and a bunch of them are very well off. I have never heard of a limit on it if your income is too high
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| Posted 1/21/08 9:12 AM |
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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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Re: Daycare & taxes
I havent heard of that I plan on going in for the credit. The link that was posted above doesnt say anything about income so I think you should be ok. I know my accountant told me to bring the statements with me so hopefully it shouldnt be a problem.
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| Posted 1/21/08 9:17 AM |
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EmmaNick
*
Member since 12/06 16001 total posts
Name:
*
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Re: Daycare & taxes
I don't think that's true. There is no income cap on childcare expenses. If you go to a place like taxcut.com, you can enter your W-2 and childcare expenses yourself just to see what kind of credit you would get.
I do know the credit with the IRS is much much less than the State. My federal credit was like $300 for over 6k in childcare (6k is the max for 2 kids). My state was a couple of thousand though.
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| Posted 1/21/08 9:19 AM |
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justthe4ofus
I hate hypocrites!!!!!
Member since 5/05 6905 total posts
Name:
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Re: Daycare & taxes
I don't think that is true. I think you can only claim to a certain amount but I never heard that it was based on income.
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| Posted 1/21/08 9:35 AM |
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babymakes3
Almost there!
Member since 7/06 7376 total posts
Name:
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Re: Daycare & taxes
Did you file married filing jointly? The website says you have to file that way if you are married.
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| Posted 1/21/08 9:36 AM |
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KPtoys
I'm getting old
Member since 5/05 8688 total posts
Name:
Karen
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Re: Daycare & taxes
Last year we claimed Emmas preschool as daycare. It was $900 for the year and we only got a SMALL fraction of that as a deduction. I leave it all up to my accountant to know the stuff for me.
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| Posted 1/21/08 9:39 AM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: Daycare & taxes
It depends on the amount of the deductions. I know one year we only claimed a small portion of it.
Sometimes any more deductions, & the dreaded AMT tax kicks in.
eta. that was as per our accountant. We don't do our own taxes.
Message edited 1/21/2008 9:57:40 AM.
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| Posted 1/21/08 9:57 AM |
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DanaRenee
Fitness Junkie!
Member since 6/06 6470 total posts
Name:
Dana
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Re: Daycare & taxes
Do you both work? Do you both have earned income?
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| Posted 1/21/08 10:01 AM |
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ChilisWife
God Bless America
Member since 5/05 3571 total posts
Name:
A.K.
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Re: Daycare & taxes
I think what he is saying is that, although you can claim the deduction, it may not make a difference in your tax liability. Once you make over a certain amount of money, you have to pay the "alternative minimum tax" (AMT). At some point, your deductions no longer matter because you are going to have to pay $X amount in taxes regardless.
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| Posted 1/21/08 11:48 AM |
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