The Tax Questions Blog

Posts Tagged ‘finance’

Question: what kind of tax records do i keep for paying childcare?

I am pursuing a new career in transportation. I will be gone for long periods of time as a truck driver. I am doing this for a year to get my year of experience of over the road trucking so I can eventually get a good paying local job. I will be paying out $352.00 per week for childcare expenses to a relative and a day care center. What kind of records do I need to keep for the part I am paying to a relative so that I can claim it on my taxes. I am sure I have to prove that I paid this out and I am paying such a large amount over a year time that I really need to be able to claim this on my taxes.

Answer: Give the provider a Form W-10, Dependent Care Provider’s Identification and Certification, first. Here's a link: http://www.irs.gov/pub/irs-pdf/fw10.pdf They don't get paid until they return it to you! Then pay all bills by check and note the purpose on the memo line. The daycare center should also provide a receipt.

To keep things simple, do NOT have the care provided in your home! That opens a messy can of worms for dealing with Household Employee taxes. You DON'T want to go there!

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