How To Include Daycare Costs In Taxes Using Turbotax?

To claim the Child and Dependent Care Credit, you must enter your income and be qualified to deduct childcare expenses in TurboTax. You can do this by searching for child care credit and selecting the Jump to link at the top of your search results. If you hire someone to care for a dependent or your disabled spouse and report income from employment or self-employment on your tax return, you may be able to take the credit for child and dependent care expenses on Form 2441.

To add a childcare provider in TurboTax Online, go to “Federal Taxes” at the top of the screen. Enter your child care expenses by selecting Federal; Deductions and Credits; I’ll Choose what I work on; Child and Dependent Care. You must file Form 2441 with your return to report your actual child care expenses.

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 be eligible to claim the credit. From the Federal module in TurboTax, go to the Deductions and Credits Section and find the You and Your Family menu option. Choose Child and Other Dependents Tax Credit and work through that section to enter your child or dependent care expenses.

You can claim from 20 to 35 of your care expenses up to a maximum of $3,000 for one person, or $6,000 for two or more people (tax year 2023). You can claim child care expenses using form T778, but please keep all receipts for later use by the CRA.

For more information on claiming childcare expenses, visit “Federal Taxes” at the top of the screen, select “Deductions and Credits”, and scroll down to “You and Your Family” and select “Show More”. The CRA Form T778 – Child Care Expenses Deduction lists these rates and further explanations about claiming childcare expenses.