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.

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Pioneer
Posts: 1
Registered: ‎04-20-2017

child care payments deductible from income in 2016

Just wondering if I can deduct my child support payments for the year 2016, and if so how?

Tax Pro
Posts: 5,281
Registered: ‎02-23-2016

Re: child care payments deductible from income in 2016

Hi Jmoney,

 

Welcome to the H&R Block community.

 

If you have some childcare expenses that you paid then you there's actually a credit you can take, and that's better than a deduction because a credit will reduce your tax liability dollar for dollar.

 

The credit for childcare is called the Dependent Care Credit.  So long as your child was age 12 or under and your filing status was any status other than married & filing separately you meet the basic qualifications.  The credit is a maximum of $1,050 per child and it's calculated by entering a maximum of $3,000 worth of expenses for each of your first two children on Form 2441.

 

Note that the dependent care credit is a non-refundable credit, so it will reduce your tax liability but it will not result in an additional refund.  If you have no tax liability to reduce then you cannot take the dependent care credit.

 

In the online software you can find Form 2441 in the adjustments & deductions section of the interview.

 

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

 

Louis,

Senior Tax Advisor (Tampa, FL)