Instructions For Form It-216 - Claim For Child And Dependent Care Credit printable pdf download

Instructions For Form It-216 - Claim For Child And Dependent Care Credit

Claim for Child and Dependent Care Credit

Recordkeeping Suggestions for Child Care Expenses

If you’re a taxpayer who has applied for the Child and Dependent Care Credit, it’s important that you

maintain good records.

The Tax Department may ask you to produce records that prove the amount of child care expenses

claimed on your income tax return.

•

The department will use that information to confirm that you’re entitled to the credit.

•

If you don’t keep records, or if your records don’t prove what you claimed, you won’t get your money.

For these reasons, it’s important that you keep good records. These suggestions will help you do that.

How to Keep Good Records

As a general rule, you should keep records of your transactions - payments, purchases, etc. - at the time

they happen. Don’t wait until the Tax Department asks for your records. If you try to describe the details of

your business months - or even years - later, your recollection may not be reliable. The Tax Department is

less likely to accept records created long after the fact.

Keep receipts and other documents

Be sure to keep documents that support the amount of child care expenses you claimed. Examples of

supporting documentation include:

•

copies of any checks and money orders that you used to pay expenses. Be sure to copy the front

and back of the cashed check or money order

•

itemized statement issued by a licensed child care provider

•

cash receipts received at the time of payment that can be verified by the department

Use a bank account

Having a bank account can help establish your expenses, particularly if you make payments by check. It

is easier for the department to verify your payments with copies of cashed checks.

Are you receiving public assistance?

You may only claim the actual amount you paid to the child care provider for the cost of child care. You

may not claim expenses that were paid on your behalf by a social service agency.

You would need to provide:

•

A copy of the placement notice from the Administration for Children’s Services or the Department of

Social Services indicating the placement date and your parent fee

Keep records for three years

The Tax Department may ask for your records as long as three years after you file your return.

DTF-216 (5/12)

Instructions For Form It-216 - Claim For Child And Dependent Care Credit