Is it possible to base the childcare Tax Credit off of opportunity costs associated by not working?

Sure, it is a given that the childcare tax credit goes towards families who pay daycare. However, If you think about it, wouldn%26#039;t it make sense to offer the credit to families who cannot afford to pay for daycare and work (due to the offset of return). In the end, the family who only has one full time parent is put at the disadvantage because daycare may be too expensive if the other parent is not technically trained. Even if the other parent is trained in a technical field, sometimes the costs of daycare (up to $1000 per month) do not justify the means (losing time with kids, increased illness) to bring in less than minimum wage for many jobs.

If you base the criterion on how much it costs to stay home vs. the cost of childcare, it may be similar. Could the stay at home parent be considered a single day care provider for their own child? Is there a black and white definition for this?

Is it possible to base the childcare Tax Credit off of opportunity costs associated by not working?

Unfortunately no, you can%26#039;t because you can%26#039;t be an immediate family member and claim childcare monies. I wish you could, I have two kids that would have to go into daycare if I had a job (I%26#039;m a Graduate school student full time, but could also work full time if it was financially viable), the cost would be about 1600 a month in my area...

So I choose to stay home and watch my kids and other people%26#039;s children, I have been an at home daycare provider for the last 7 years.

Is it possible to base the childcare Tax Credit off of opportunity costs associated by not working?

If you are married and one spouse if a full time student and the other has earned income you can claim the child care tax credit as long as you meet the other qualifications for taking the credit.

This gives you a tax break so you can get the education needed to get a good job.

You cannot consider yourself a day care provider for your own child. That would be the gov paying you to raise your child

Is it possible to base the childcare Tax Credit off of opportunity costs associated by not working?

So, you want a tax credit for day care you didn%26#039;t pay for since a parent did it.

Sure, and I want a tax credit for day care I didn%26#039;t pay for because I have no kids. Also some tax credits for the charitable contribution I meant to make and forgot to. And tax credits for the solar panel I keep meaning to install.

Next thing you know even kids will get a tax credit for day care for the grandkids that don%26#039;t exist yet.

Is it possible to base the childcare Tax Credit off of opportunity costs associated by not working?

A parent is a care provider for his or her own child, but those expenses have no tax benefit because they are not incurred for the purpose of producing taxable income.

Parents who pay for daycare in order that they may work (or go to school, or because they are disabled) are eligible to get a credit to reduce taxes on their earnings.

Is it possible to base the childcare Tax Credit off of opportunity costs associated by not working?

Is this a philosophical question, or are you asking what the law says?

By law as it stands now, NO you can%26#039;t take the credit if one of you is a stay at home parent.