Common Childcare Tax Mistakes and How to Avoid Them

Written by ChildCareTaxCreditEstimator

1) Missing or incorrect provider information

The problem: Leaving out the provider’s SSN/EIN or misspelling their name/address can delay your refund.

Fix: Ask for a completed W-10 or written statement with their legal name, address, and SSN/EIN; double-check every character before filing.

2) Counting expenses that don’t qualify

The problem: Including kindergarten tuition, overnight camps, or expenses that weren’t for work-related care.

Fix: Review childcare expenses qualifying for the tax credit in our FAQ and How to Claim Guide. Preschool, daycare, after-school care, and day camps often qualify; K-12 tuition and overnight camps do not.

3) Double-counting with a Dependent Care FSA

The problem: Claiming the same dollars in both your employer’s dependent care FSA and on your tax return.

Fix: Coordinate carefully: FSA dollars reduce the expenses you can apply to the credit. Your tax software will prompt for this; keep your W-2 handy.

4) Not keeping receipts or proof of payment

The problem: If requested, you may need to show proof you paid the provider for eligible care.

Fix: Keep bank/credit statements, invoices, and any signed statements from your provider with dates and amounts.

5) Forgetting to include all qualifying dependents

The problem: Claiming expenses for one child but forgetting another dependent’s eligible expenses.

Fix: Track by child. Our Estimator lets you test amounts per child and see your combined credit.