Biz Write-Offs LogoBiz Write-Offs

Daycare expenses

$8,000-$25,000/yr

Can I Write Off Daycare?

Short answer: Not a deduction, but daycare costs earn the child and dependent care credit, which is larger starting in 2026.

Count up to $3,000 of costs for one child or $6,000 for two or more; the credit rate can now reach 50% for lower incomes.

Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.