day care tax credit

newperson09 · Post by **newperson09** » Mon Oct 30, 2017 11:27 pm

my wife just got a new born baby so our older son 2.5year old goes to day care (but my wife is not allowed to work anyway).

Any way that i can claim day care tax credit?

thanks

nelsona · Post by **nelsona** » Tue Oct 31, 2017 9:45 am

For US, only if both parents work (or are looking for work) can child care expenses be claimed.

In your other post you say your family is outside US. Does your spouse have work authorization in that country? Why would she not be "allowed" to work?

newperson09 · Post by **newperson09** » Fri Nov 03, 2017 9:23 am

I have TN visa and therefore my wife not allowed to work in USA.
Since the rent is extremely high and not able to work, there is no point for them to stay here. Better for them to live in China (she is Chinese citizen & Canada PR).
So, I am still calculating which one gives me more profit than staying in california.

1. Can i still file married jointly if wife + kids live overseas? Or I should file married file separately?
She will not be able to work as we have a newborn baby.

2. Can i still get child tax benefit? what about day care in china? still claimable?

what would you advise?

thanks

nelsona · Post by **nelsona** » Fri Nov 03, 2017 10:07 am

1. yes you can file MFJ, if you report her world income. If she makes no income, then this would obviously be the way to file.
2. You would not get foreign daycare expenses. You could get the child tax credit, or the Additional child tax credit.

newperson09 · Post by **newperson09** » Tue Nov 07, 2017 5:04 pm

that leads to other questions:

1. when claiming dependents (children), it asks for how many months does he live with you. If all my kids live overseas, it means i can't claim them. This situation means my taxable income is higher if (wife + kids) live overseas?

2. Coincidentally, I just have a new born baby in Aug 2017. When i claim tax for this baby next year, do i need to tick yes, she lives with me whole year OR partially 4 months only?

3. I also made a mistake signing a FSA dependant care. Is there any way to get the money back? (wife is on TD visa which is TN visa dependant, thus not allowed to work). But, we just have a newborn baby so she can't take care of the other toddler. Why doesnt the tax law cover this situation?

thanks

nelsona · Post by **nelsona** » Tue Nov 07, 2017 9:29 pm

1, For Cdns, it doesn't matter where they live.
2. Again, doesn't matter.
3. Noi, It is not a tax matter. It is a use it or lose it plan, with restrictions. You failed to determine this when signing up.