Child care costs can be tax deductible if you acquire the right information.
If your child regularly attends a daycare center, you are often entitled to write off that expense when you file taxes each year. To do this, it is important to acquire all of the needed information, including the center’s tax ID number. In most cases, this is simple to do and should not take much time.
1. Call your child‘s daycare and ask to speak with the accountant, owner or manager. Ask them directly for the tax ID number. More than likely, assuming it is a reputable center, they will have no problem giving it to you.
2. Search online. Several sites offer tax ID look-up features. Sites like Knowx.com or FEINSearch.com allow you to type in the name of the company and then scan the site’s database of companies and organizations. Most of these services will charge a fee, but if you can’t get the right person on the phone, it may be worth the investment.
3. Contact the IRS if your daycare will not give you the number. Let the center know you intend to do so if it does not cooperate, and then follow through. Notify the IRS of the center’s refusal to comply with your needs. This could result in the center being investigated. More than likely things won’t get to this stage.