Dependent care credit

[Kea]

In January - May, 2013, clients have 4-year-old child in nursery school while both parents work. In March Mom gives birth to 2nd child. Do expenses for nursery school count as day care during the weeks Mom took off from job to care for newborn? She took off more than 2 weeks so does not meet the definition of temporary absence due to illness (in Pub 503).

Thanks

[RitaB]

Oh, my, I never even thought about a situation like this.

"The care must have been provided so you – and your spouse if you are married filing jointly – could work or look for work."

That stinks. Wow. On the other hand, she was definitely "working"...

[kcjenkins]

In January - May, 2013, clients have 4-year-old child in nursery school while both parents work. In March Mom gives birth to 2nd child. Do expenses for nursery school count as day care during the weeks Mom took off from job to care for newborn? She took off more than 2 weeks so does not meet the definition of temporary absence due to illness (in Pub 503).

Thanks

You could take it for the two weeks for the childbirth, but not for the extra time she took.

[Kea]

Yep, that's what I was afraid of. Definitely working! (Maybe even harder than her job?)

I've thought about it before, but the actual expense is usually so far above the max allowable that it was moot. This couple didn't max out.

I was hoping you'll could find a way.

Thanks for confirming.

[kcjenkins]

Certainly she is 'working' at home,but it's not qualifying work for that tax credit.

[RitaB]

Certainly she is 'working' at home,but it's not qualifying work for that tax credit.

She would also have two kids in daycare, and the credit would be double for that period if she had gone right back to work. Like so many areas, the law has (I guess) unintended consequences. Seems like traditional two parent families gotta keep their noses to the grindstone. And that's not bad, but when you look around, and I am going to shut up now.

[Kea]

The baby didn't have any daycare costs. Then they would have exceeded the credit. Didn't ask but I'm guessing they had family do the babysitting for the newborn?