Thank you so much for your reply. You have pulled the same section of the tax code as I did. I did notice the stipulation about offering the benefit to all of my employees (similar to retirement, healthcare, etc). This is why it may be advantageous for me to use my wife's corporation, which has no employees except for my wife. Please let me know what you find. If I am right about this credit, it should help many of your other clients (which is what it is all about). Also, please email me your contact information because I have another matter that I would like to talk with you about in private. Thank you again..

Zip Code: 78132

I'm not sure that you'll be eligible for this tax break. Unless I'm not reading the rules correctly, your business only qualifies for a credit if:

1. You pay to build a dependent care facility on your premises

2. You incur expenses in connection with operating your day care facility

3. You enter into a contract with a qualified child care facility to provide care on behalf of your staff.


So I guess my first question to you would be if you would even qualify for this tax credit.

Zip Code: 01801

Maybe i am reading it incorrectly. My understanding is that money paid to an "entity" who is providing childcare for an employee is deductible under this credit. I know of several employers that put money for their employee's childcare expenses into a flex account. I do not believe that they would be doing it if they didnt get a tax break. Again my wife's corporation has no other employees and would be perfect for paying the nanny. I have also posed this question to my tax attorney and accountant (have not heard back from them yet). If two of the three of you feel that this credit is fruitless, I will give it up and use my time for something more constructive. Thank you very much for your time.

Zip Code: 78132

Please let us know what they tell you.

Zip Code: 01801