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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 41035
Experience:  30 years in civil, probate, real estate, elder law
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I am a Tele Radiologist whose hours are unpredictable but

Customer Question

I am a Tele Radiologist whose hours are unpredictable but usually is between 2pm and 2am. I have a Nine month old child who needs care when I am working. My husband has unpredictable hours as he has joined Kaiser health management recently.Our baby care cost is around 40k a year and because we make over 450k a year together, I was informed by our accountant that we can not deduct our baby care costs for tax purposes. Is this accurate?
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.

Hi and welcome to Ja. I am Ray and will be the expert helping you today.

Thats not entirely correct.You can deduct a reduced amount here, but it is something.The percentage of expenses a family can claim steadily decreases as income rises, until families with AGI of $43,000 or more reach the minimum claim rate of 20 percent, qualifying for a maximum potential credit of $1,200.

So you should be able to deduct at least $1,200 as credit here is prorated, the more you make the less the deduction.But you should at least get some deduction here.

Reference

You may also see if either one of you can set up a flexible spending account (FSA) here with either employer.It allows you to pay with tax free income by payroll deduction.
It might be an option if either has an employer that offers this.

Expert:  Ray replied 1 year ago.

Reference to the grid and amount I gave you above..

http://www.taxpolicycenter.org/press/quickfacts_cdctc.cfm

You can deduct a piece here, $1.200 I know this doesn't come close but it's something.

I appreciate the chance to help you today.Please let me know if you have more followup.

Expert:  Ray replied 1 year ago.

This is a $1,200 credit , it comes directly off your taxes so thats something here.