My next door neighbord, just divorced, Is working in her taxes for very first time in her life, she asked me few questions and I only could refer her to the public library, but they are not sure if Mothers Day Out programs can be tax deductibles. She has two little ones and since it is not a real day care, the question is if can be deductible as "education" or "donation"...or simply, cannot be deductible.
Thanks for any advide.
The IRS website has a place to ask questions online i believe. I honestly think you can write off any and all schooling/childcare through kindergarten, and MDO is day care essentially even though it is part time.
A mother's day out program is a form of child care, for which a credit is available if both spouses have earned income during the taxable year. See Form 2441 and the instructions; you will have to get the MDO's tax identification number - the MDO should be familiar with that request. If child care is necessary to enable the second spouse to work, then a credit is available, but is limited based on the couple's overall income and the earnings of the lower-paid spouse. You can find many resources at the IRS website, and you can go to an IRS office for free assistance. The IRS sponsors a number of volunteer tax preparation workshops; call the IRS for information on the one nearest you. There is no deduction available for education, and the MDO expense would not qualify as a charitable donation because services were provided in exchange for the payments. [tax attorney & cpa]
Her best bet is to us a tax program - well worth the money and walks you thru the steps one by one, telling you what is and is not deductible. I am not a cpa, but do know that when my daughter was in a MDO they provided us a receipt and tax # which we used to declare on our taxes.
C.
I just worked through this issue as well. What I
found out is that you can deduct MDO/preschool
programs if you are at work during the time
that your child is participating in the program. If
you are not at work then it is not deductible.
I asked this same thing. However, if you are receiving a service for your tution/dontation then you can't write it off your taxes. My MDO is non-profit. I thought I could deduct it as dontations but our tax person said no, not if you receive a service for it.
C.
My son was in MDO for 2 years and all we had to get from MDO was their EIN number. We were allowed to claim the deduction for childcare.
It is my understanding that she needs to be earning income during that time her child is in the MDO as the child care tax credit is meant to relieve some of the burden of being taxed on something necessary to work. Hope that helps.
My husband works and my children attend a MOD. We actually use our flexspending dollars to pay for it through my husbands work. So yes they are tax deductable until the are in K.
Yes, they are a "day care" if you are working while they are there. You have to call them and get their Tax ID number.
If she is using the program as childcare so that she can work or attend school, it is tax-deductible. If not, then it is not tax-deductible. It is not a donation because she is receiving a service for her money.
E-mail me if she has any other questions - I am an accountant.
I have used a Mother's Day Out program and from my understanding of the tax instructions/law. . . MDOs are tax deductible as long as the mom and dad are either both working (and it doesn't have to be full time) or disabled. In other words, they follow the same rules as a "regular" day care. It doesn't matter who you pay to take care of your child (even a private home), but you can only deduct up to the amount that the lower wage earner makes.
K.
Every persons situtation is different. If it is used as a form of childcare while parents are working then yes. If it's just something for your kids to do while you go shopping then no.
She can deduct them if she is earning income other than income from disability.
I am a SAHM and my 2 YO is in MDO 2 days a week. We could not decuct this year since I was not employed, but I did receive monies from a home builder from their referral program which was reported to the IRS by them, so I used that as income and we were able to decuct.
