Childcare expenses, including babysitting and daycare, are taxable but also deductible. There are however certain limitations with regard to who can claim the expenses.
The money parents pay to be able to get out of the house and do some volunteer work for a charity are considered charitable contributions and therefore deductible, even though it wasn’t given directly to the charity, according to the Tax Court. Based on this, the court overruled an opposing IRS revenue decision.
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