The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: child care credit, car donation for head of||Date: 1/24/2001 8:06 PM|
|Author: TMFExRO||Number: 44771 of 121061|
I plan to file as head of household with standard deductions and claim the child as my dependent.
Questions: (1) Can I claim a credit for the donated car if I am claiming standard deductions?
No. You get a tax benefit from charitable contributions only if you itemize deductions on Schedule A of the 1040. If you think there's a chance that the value of the car plus your other itemized deductions, e.g. state income tax, would be more than your standard deduction, get a copy of Schedule A and work the numbers.
(2) Can I claim Child Care Credit for payments made to the daycare provider?
Probably. Get Form 2441 and its instructions.
(3) Can I claim a credit for daycare supplies, namely diapers and wipes. If yes, do I have to show receipts or can I make an approximation?
No. Look at it this way. The child care credit is there because the child care enables you to work and earn taxable income. You'd need those supplies whether you were working or not. (Just an attempt to apply some logic. Actually, you can't base any credit on these expenses because the law doesn't allow it.)
(4) Are there any other credits available to me?
We can hope that this discussion of diapers means that your child is under 17. Thus, the $500 child tax credit applies.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|