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

Social Security & Taxable Income

Learn whether social security disability is considered taxable income with advice from the tax experts at H&R Block.

Claiming Tax Credit For Education Costs

Can you claim a tax credit for education costs if you have scholarships and student loans? Learn more from the tax experts at H&R Block.

Can You Claim Gas On Your Taxes?

Find out if you can claim gas expenses on your taxes with the tax experts at H&R Block. See if you are eligible for the standard mileage deduction.

Claiming an Education Credit

Not sure if your dependent can claim an education credit? Discover your options for filing or amending your return. Get tax answers from H&R Block.