TAX DEDUCTIONS ON CHILDCARE

You can deduct childcare expenses for day-care, work-related babysitting, domestic help and nannys.

In order to qualify for this deduction, you must pay over one-half of the cost of running your household and the child must be under the age of 13 and reside in your residence. In the event of divorce, the parent with custody is entitled to the childcare deduction.

The maximum amount of childcare expenses that can be deducted is $3000 per child.