Child Care Tax Credit

Hello Racquel

Since you are not married to the father of your child, to claim your child as a dependent for the child tax credit, one of you (either you or the father) will have to file as head of household as filing status to claim your child  for Child tax credit

In response to your question: Do we both file for the same expenses, what expenses can I file for?

You are referring to the Child and Dependent Care Credit, which is different from the Child Tax Credit. The Child and Dependent Care Credit is a credit for expenses paid to care for a qualifying dependent (in this case, your child). These expenses are any expenses you paid to have someone or an entity care for your child (dependent) under 13 years of age, so either you, the father of your child, or both of you (if married), can either work or look for work. So expenses for daycare or if you paid for a nanny would be examples of expenses that would qualify for this credit.

For the 2023 tax year, you can claim 20-35% of child care expenses up to maximum of $3,000 for one child or maximum of $6,000 for 2 or more children.

Response to your question of Do I file for a nanny?

If you have a nanny, you would have to file paperwork if you are paying the Nanny above $2,600 for the 2023 tax year or $2,700 for the 2024 tax year. If this applies to you, you would have to File a Schedule H with your Form 1040 (individual federal tax return)

In addition, if you are paying the nanny above the threshold for the 2023 or 2024 tax year, you will be expected to pay self-employment taxes for the nanny. 

You would also need to apply for an EIN (using Form SS-4) as well as file a W-2 and W-3. Below is a link with more information about these documents.

Filing forms for household employee

You will also have to file a Schedule H with your Form 1040. Below is a link with more information about this document.

Schedule H

Edited on 08.02.24 at 4:10pm PST