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Level 1
posted Mar 30, 2024 8:10:13 AM

Claiming child care when claiming the disability tax credit

I'm claiming child care for my children under the disability tax credit for the first time.

 

I've already entered their child care expenses under "Child Care Expenses". BUT, there is also a spot under "Additional Dependant Information" for child care expenses when YES is turned on for claiming the disability tax credit (looks like this - Child care and attendant care expenses claimed for NAME by anyone)

 

My question is: Do I claim my child care expenses in both places?

 

It seems that I should, because I get this warning if I don't enter the child care expense in the Additional Dependant Information DTC area:

 

You have a dependant under 18 that qualifies for the disability tax credit. To correctly calculate the disability supplement amount available for transfer, please indicate the amount of child care and attendant care expenses claimed by you or anyone else for this dependant.

 

0 5 4300
1 Best answer
Intuit Alumni
Apr 1, 2024 7:26:30 AM

The first area is for children in general and the second question is TurboTax making sure that, if applicable, you will also be prompted to apply for the additional child care expense tax credit when you have the Disability Tax Credit.

 

As per our TurboTax article Tax Tips for Parents of Kids with Disabilities

Supplement for Children with Disabilities

In addition to the basic disability amount, your child may also qualify for the supplemental amount. This credit caps at $4,733 and is reduced by any childcare or attendant care expenses claimed.

 

Please see our TurboTax FAQ Where do I enter child care expenses in TurboTax?

 

Thank you for choosing TurboTax.

5 Replies
Moderator
Mar 31, 2024 3:17:14 PM
Level 1
Mar 31, 2024 7:58:10 PM

Thank for your response.

 

What is confusing to me is that there are two places to enter child care. 

 

If I enter it under child care expenses (receipt summary) and leave out entering it under the DTC child expense my tax refund is greater than if I enter it in both child care expenses and DTC child expenses. I'm confused why there is a repeated question for child expenses under the DTC dependent information area? If I have already entered my receipts and child care breakdown why does it ask me to do it again in the DTC area? 

Intuit Alumni
Apr 1, 2024 7:26:30 AM

The first area is for children in general and the second question is TurboTax making sure that, if applicable, you will also be prompted to apply for the additional child care expense tax credit when you have the Disability Tax Credit.

 

As per our TurboTax article Tax Tips for Parents of Kids with Disabilities

Supplement for Children with Disabilities

In addition to the basic disability amount, your child may also qualify for the supplemental amount. This credit caps at $4,733 and is reduced by any childcare or attendant care expenses claimed.

 

Please see our TurboTax FAQ Where do I enter child care expenses in TurboTax?

 

Thank you for choosing TurboTax.

Level 1
Apr 1, 2024 8:10:46 AM

Thank you. I'll enter it in both areas to be safe. However, it's still a bit confusing as not entering it in the DTC area gives me a greater return. I would suggest that the Child Care question have a bit more information in the DTC area to explain the supplement amount as it's not very clear. Or it should be labeled as mandatory, if a person is claiming child care expenses. Leaving it as optional will make most people skip entering it here. 

 

 

Intuit Alumni
Apr 1, 2024 8:13:04 AM

Thank you for your feedback, we value your opinion and will share this information with the proper TurboTax team.

Thank you for choosing TurboTax.