Child Deductions and Dependent Deductions

How much did you spend on care for your child or a dependent in 2015? The money you spend on a child or an individual that is dependent on you can provide a deduction of up to $3,000 for one qualifying person, or $6,000 for two or more individuals. Find out if your child or dependent qualifies for a deduction. We recommend speaking with a tax professional for complete details about your deduction, but here is a brief overview on child deduction and individual dependent deductions.

Who is considered a qualifying individual:

  • Your child if they are 13 years old or younger when the care is provided.
  • Your spouse if he or she is not physically or mentally capable of caring for themselves.
  • An individual that is not physically or mentally capable of caring for themselves and has lived with you for more than half a year. This individual also needs to be your dependent or could have been claimed as a dependent on another taxpayer's return.

What is deductible?

If you have paid someone to take care of a qualifying child or individual, your cost will likely be deductible. This cost includes expenses paid for care provided inside the household or outside the household. The expenses must be for the well-being of the individual.

You will also need to provide proof of the care provided. Form W-10, Dependent Care Provider's Identification and Certification can be completed for proof of the persons or organization that provided the care. Note that the care provider cannot be your spouse or the parent of your qualifying individual.

The truth is that each family or individual's situation is unique and so is their filing. You will need to speak with a tax professional to have a full understanding of what is deductible and how to fully take advantage and maximize your deduction.

Dependent Care Benefits

Special rules apply if your employer provides dependent care benefits. Form 2441, Child and Dependent Care Expenses, will guide you through the process of reporting your benefits.

Child and dependent deductions is an important topic to discuss with your accountant. These deductions are made available by the IRS to help families and individuals reduce their taxes. Contact Jo Ann Koontz to set up a consultation about reducing your taxes by maximizing your deduction - 941-225-2615.


Recommended Resources Provided by the IRS


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