John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Child Care / Dependent Care Benefits

"I gave the information on where I spent the $5,000 to my employer - you don't need it again do you?"

A very common point of confusion. We still need to report on your tax return where you spent the money. Proper qualification for the child care credit or dependent care benefits goes beyond what your employer knows (for example, your employer does not know whether your spouse works or not). Accordingly the desired tax result is not achieved until you get to the tax return level and accordingly we absolutely must have the requisite information (provider name address and taxpayer id #s as well as amount expended & for which qualifying person [generally child]).