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

Claiming Parents as Dependents

Review the criteria that could allow you to claim your parents as dependents on your taxes with help from the tax experts at H&R Block.

Complete Taxes Quickly – How to File a Tax Return STAT!

Did the tax deadline surprise you? Learn how to file taxes quickly and accurately with the experts at H&R Block.

Calculating Quarterly Estimated Taxes

Need to know how to calculate estimated taxes? We're here to help. Get tax answers from H&R Block today.

Changing Filing Status

Wondering how you can change your filing status from joint last year to separate this year? It’s not too hard, but it might not be the best idea.