Where do I enter credit for Employer Provided Day Care Expenses?

For the credit for employer-provided childcare facilities and services, you must use Form 8882, which is specifically designed for employers to claim this credit as part of the general business credit. This form is not used by employees or individuals claiming the Child and Dependent Care Credit.

Who Files Form 8882?

• Employers use Form 8882 to claim the credit for qualified childcare facility and resource and referral expenditures.
• It is not for employees or individuals claiming personal tax credits for childcare expenses.

Where to Enter the Credit

• On Form 8882, Line 7, enter the total credit for employer-provided childcare facilities and services.
• If you are an estate or trust, you must allocate the credit between the estate/trust and beneficiaries in the same proportion as income was allocated. Enter the beneficiaries’ share on Line 8.
• If the estate or trust is subject to passive activity rules, any disallowed credit from prior years carried forward should be included on Line 5.

Important Notes for Employees

If you are an employee receiving dependent care benefits from your employer (such as through a dependent care assistance program), you do not use Form 8882. Instead, you may claim an exclusion or deduction on Form 2441, Part III, and these benefits may affect your eligibility for the Child and Dependent Care Credit (claimed on Form 2441, Part II).

Relevant Tax Rules and Forms

• Form 8882 – Credit for Employer-Provided Childcare Facilities and Services (IRS Form 8882, Rev. December 2017)
• Form 2441 – Child and Dependent Care Expenses (for employees claiming benefits or credit)
• Publication 503 – Tax Credits for Individuals (explains dependent care benefits and exclusions)

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Disclaimer: Always verify details with the current year’s official IRS forms and instructions from the Federal or State Department of Revenue. For complex situations, consult a CPA or tax attorney.