Question

Childcare subsidy

Forum|Forum|6 years ago
March 12, 2020
1 reply
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I am a federal government employee and I receive a childcare subsidy for pre-k school/daycare for my 2 young children. Do I include this subsidy money as income on my taxes and if so, should I then claim the TOTAL amount paid to the school for 2019 to include both the amounts we paid out of pocket AND the amount received from the subsidy childcare program?

JohnB5677

No. The subsidies are not considered income and are not taxed.

Yes you should include both the total amount. If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two

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