Should you be able to fully deduct the cost of childcare from your taxes?
Right now in the USA you can deduct 35% of qualifying childcare expenses of $3000 for 1 child, or $6000 for two or more.
Simple math would tell you that if you need full time childcare (let’s say 5 days a week), $3k works out to $58/week... and I don’t know if there is any place in the country where you can get care for that cost (I could be wrong).
The facility we used for my first child was $328/week for an infant (pretty average for the area). So at $17k/year the standard deduction feels skimpy... likewise, my school age daughter now attends summer camp at a cost of $1620 for 9 weeks (part time). Some of her friends from school do the same program but have SAHMs. In theory a SAHM with 4 kids in Summer Camp could be paying $6480/year for care, and I, with an infant and one child in summer camp could be paying $18k+/year in care, but our optimal dedication could be the same if our households have similar incomes. this is just one example..
Now, this is not at all about hating on SAHMs.. they are great and every family has their own situation and choices.. but that is also kinda my point.. it can be very situational, and with that in mind, would this be something where a more accurate view of costs should be claimed?
Do you feel like the deduction process should be reviewed for childcare? Is it too generous or too stingy? Does it depend on other factors
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