All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Posts: 1
Registered: ‎10-03-2017

Daycare expenses

I have a foster baby and I'm wondering if I am able to claim the daycare expenses when I file my taxes? I get just enough of the monthly stipend to cover the daycare with very little left over. I know that I can claim the baby as a dependent, that I can claim Head of Household and the Earned Income Credit, and that the monthly stipend I receive is not considered income. I just want to know all that I will need to have before the time comes to file my taxes.


Thank you.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Daycare expenses

Hi Keithfan06,



Welcome to the H&R Block community.


When daycare expenses are covered for you by funding outside of your own money, whether it be by government stipend, employer benefits program, etc., you cannot claim the dependent care credit for those expenses that were covered.  Based on the information you provided, since this stipend is covering all of your daycare costs you will not be able to claim the dependent care credit.


However, you can claim the child tax credit provided of course that your income is within the limits for the credit.



If you have any other questions I'll be glad to help.



Senior Tax Advisor (Tampa, FL)