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.
Looking for more information about your South Carolina refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.
Looking for information about your District of Columbia refund? Get details on checking your D.C. refund status, who to contact, and more from H&R Block.
Whether you have to file state taxes depends on a few factors. In some cases, you may not be required to file state taxes if you only lived in the state a short time or if your income is below a certain level.
Do you qualify for an IRS tuition and fees deduction? Learn more from the tax experts at H&R Block.