Tax guru questions...

[zachary]

My wife and I just welcomed our first child on Feb 14. I am trying to get a head start on taxes next year. Both her and I have full time jobs and we will be sending the young one to daycare soon. We have never itemized, our tax situation is pretty straight forward and never a whole lot of medical bills.

Do you have to itemize to get deductions for daycare costs? What other expenses can you write off for child care? I am keeping all medical receipts this year with the birth and all I am sure there will be a lot of them.

[GeorgeG.]

IIRC, the daycare center will send you the form at the end of the year. I believe it only applies towards tuition.

[BlackGT]

I don't believe you have to itemize to claim day care costs.

[juiceweezl]

My wife and I just welcomed our first child on Feb 14. I am trying to get a head start on taxes next year. Both her and I have full time jobs and we will be sending the young one to daycare soon. We have never itemized, our tax situation is pretty straight forward and never a whole lot of medical bills.

Do you have to itemize to get deductions for daycare costs? What other expenses can you write off for child care? I am keeping all medical receipts this year with the birth and all I am sure there will be a lot of them.

You can deduct a portion of childcare depending on earnings. If you use a flex pay at work, that amount is taken from the total paid before deductions. You will have to itemize. It helps, but it's still a royal !@#$ing when you look at it in the big picture.

You can deduct medical costs or a portion thereof as well -- provided you don't make so much that it eliminates that. I believe medical costs have to exceed 10% of income to be itemized and count as a deduction.

In short terms, if you bust your ass through school and work to get ahead in life and provide for your family, plan on giving up more of it to Uncle Sam and getting a lot less back from his hand.

[slow99]

Just use FLEX dependent care if your work offers it.