Question

I have a question regarding childcare credit. I make my childcare payments in cash, and my childcare provider doesn’t want to report that income. Can I sill claim the childcare tax credit?

Answer

Yes. If you’re eligible to claim the childcare tax credit, you can claim it if the person you paid doesn’t report the income. Report the caregiver’s costs on Form 2441: Child and Dependent Care.

To claim the credit, you’ll provide the caregiver’s:

  • Name
  • Address
  • Taxpayer identification number, which can be a Social Security number (SSN)

If the caregiver doesn’t claim the income, the IRS will likely follow up with both of you regarding the unreported income. If so, the caregiver will have to report the income and might be subject to penalties.

Related Topics

Related Resources

Household Employment Taxes

Learn more about the rules for household employee taxes and get tax answers at H&R Block.

Tips for Filing Jointly for The First Time

Learn how to file jointly for the first time after getting married. The tax pros at H&R Block explain what you need to know about your new filing status.

Deducting Medical Expenses For Pets

Discover if you can deduct medical expenses for your pets with guidance from the tax experts at H&R Block.

EIC Separated from Spouse

Learn whether you can claim the earned income tax credit if you are separated from your spouse with advice from the tax experts at H&R Block.