Which spouse should claim child care expense deduction?

If a child lives with both parents, child care expense deduction has to be claimed on the tax return of the lower income spouse. However, the higher income spouse may be able to claim the deduction if the lower income spouse is in the following situations:

What is child care expense deduction?

Child care expenses are generally considered personal or living expenses. However, some expenses may be tax deductible if they were incurred to allow you or your spouse to earn income from employment or self-employment, to go to school, or to conduct research.

What is the child care expense deduction limit?

In typical situation, where the child lives with both parents, the child care expense deduction has to be claimed by the lower-income parent (there are exceptions). Here is the maximum amount that can be claimed as a tax deduction: (click here for changes in 2015)