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?
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:
- 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.
What does it mean to be an enrolled agent? Learn more about the roles and requirements of enrolled agent (EA) tax preparers at H&R Block.
Due to the recent TCJA changes, we have re-released our trusted Tax Calculator. With a side-by-side comparison, you can now plan for this year's tax filing.
If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.
Trying to determine the cost of tax preparation or H&R Block’s prices? Find out why there is no one-size-fits-all answer when it comes to tax prep.