Childcare tax receipts: what to give parents for the dependent care credit and FSA

What parents need from you

To claim the credit, parents list each care provider on IRS Form 2441: its name, address, taxpayer identification number (TIN) and the amount they paid that year. They need the same provider details to use a dependent care FSA. If the details are wrong or missing, the parent can lose the credit, or the tax-free treatment of their FSA money, unless they can show they tried to get them.

IRS publications don't give a format for receipts. They do say parents can rely on a recently printed invoice or letterhead that shows your name, address and TIN. Put these on every receipt and year-end statement:

• Your organization's name and address. If your program goes by a different name, show both.
• Your EIN (employer identification number). If you're a 501(c)(3), see the next section.
• The child's name.
• The date and amount of each payment.
• What each payment was for and the dates of care it covers, such as "After-school care, September 2026" or "Day camp, June 15–19".
• Refunds and credits, so the total is what the family actually paid.

If you're a 501(c)(3)

A tax-exempt 501(c)(3) organization doesn't have to give parents its TIN. Form W-10 says it fills in its name and address and writes "tax-exempt" where the number would go. Parents then enter "Tax-Exempt" on Form 2441 instead of a number.

IRS publications give churches and schools as examples of tax-exempt providers. If you're a city or county program, a public school district or an exempt organization that isn't a 501(c)(3), ask your finance office or a tax professional what to put on statements.

When a parent sends you Form W-10

Form W-10 is the IRS form parents use to ask a care provider for its name, address and TIN. Fill in Part I, sign it and give it back. The parent keeps it with their tax records. It doesn't go to the IRS.

Federal law requires a dependent care provider to give parents a valid TIN, and a provider that doesn't can face an IRS penalty. Form W-10 says that penalty doesn't apply to 501(c)(3) organizations, which can write "tax-exempt" instead. If a provider refuses, parents can still claim the credit by reporting what they have and attaching a note that says they asked. Don't make them do that.

Which programs count

Care costs count only if the care is for a child under 13 (or a dependent of any age who can't care for themselves) and lets the parents work or look for work. The main purpose of the care has to be the child's well-being and protection. Here's how the IRS treats common programs:

• Day camp: can count, even if the camp focuses on one activity, such as soccer or computers.
• Overnight camp: doesn't count.
• Before- and after-school care: can count, including for children in kindergarten and up.
• Preschool and pre-K: can count.
• Tuition for kindergarten and higher grades: doesn't count.
• Summer school and tutoring: don't count.
• Food, clothing and entertainment: don't count, unless the cost is small and can't be separated from the cost of care.
• Fees a family has to pay to get care, such as application fees and deposits: can count. A deposit the family loses when no care is given doesn't.
• Transportation you provide to or from care: can count.

A few more things to know

• Care counts only up to the day before a child's 13th birthday.
• The IRS treats a place that cares for more than six people for a fee as a dependent care center, even if it's a nonprofit. Parents can count its cost only if it follows all the state and local rules that apply to it. Check your state's rules in the BackPR state library.
• IRS publications don't directly say whether lessons, classes or sports leagues count. If a parent asks, send them to a tax professional.

Day camp or overnight camp?

Day camp costs can count toward the credit and a dependent care FSA, even when the camp is built around one activity. The IRS gives the example of a summer day camp with computer activities, swimming and arts and crafts: the full cost may count. Overnight camp doesn't count. Neither does a summer tutoring program, even if it runs while the parent works.

If you run both day and overnight sessions, list them on separate lines of each family's statement. Do the same for extras that aren't care, such as T-shirts or a separate lunch plan. Parents can then see which costs might qualify.

Receipts and year-end statements

Send a receipt for every payment. Then, in January, give each family one statement of everything they paid you in the past year.

• Cover January 1 to December 31, and list each payment by the date it was made. For the credit, parents count what they paid during the year. A prepayment for next year's care counts in the year the care happens.
• Show the dates of care each payment covers. A dependent care FSA counts an expense when the care is provided, not when it's billed or paid, and can't pay a claim before the care happens.
• Break the total down by child and by program.
• If two households split tuition, give each one a statement of what it paid. If an employer, agency or scholarship covered part of the bill, show that apart from what the family paid.
• Put your name, address and EIN (or "tax-exempt") on the statement itself.
• Keep copies, so you can send a statement again when a parent asks.

Dependent care FSA or tax credit?

A dependent care FSA is a work benefit: parents set aside part of their pay before tax and get reimbursed for care. The credit is claimed on their tax return. A parent can use both, but not for the same dollars. FSA money is also subtracted from the $3,000 or $6,000 limit for the credit, so a parent who puts $3,000 (one child) or $6,000 (two or more children) through an FSA can't claim the credit at all.

• FSA limit: up to $7,500 a year starting in 2026, up from $5,000 ($3,750 for married people filing separately, up from $2,500). The employer's plan sets the actual limit.
• Credit: starting with the 2026 tax year (returns filed in 2027), up to 50% of care costs, on up to $3,000 in costs for one child or $6,000 for two or more. That's a maximum of $1,500 or $3,000. The rate goes down as income goes up, but not below 20%. For 2025, the top rate was 35%.
• FSA claims need proof from you. An IRS Chief Counsel memo says each claim must be backed by information from someone other than the parent that shows the service, its dates and the amount. That's why parents ask for receipts with dates of care.
• Each FSA plan has its own claim form. If a parent asks you to fill one in, make sure the dates and amounts match your records.

Questions parents ask

• "Can I use this for my FSA and the credit?" Yes, but not for the same dollars. FSA money comes off the $3,000 or $6,000 limit for the credit, so a full FSA can leave no credit at all.
• "Why is there no EIN on my statement?" If you're a 501(c)(3), you don't have to give one. Parents write "Tax-Exempt" on Form 2441.
• "Does overnight camp count?" No. Day camp can.
• "My child turned 13 this year. Does that matter?" Yes. Only care before the 13th birthday counts.
• "My ex and I both paid. Can we both claim it?" Generally, only the custodial parent can: the one the child lived with for more nights that year. Give each household a statement of what it paid.
• "Do I send this to the IRS?" No. Parents keep receipts and Form W-10 with their tax records.
• "Will I get the credit?" That depends on the family's work, income and filing status. Don't guess. Point them to IRS Publication 503 or a tax professional.

Make a receipt now

Use the free childcare receipt generator to make a receipt with the details on this page.

This isn't tax advice

This guide is general information based on IRS publications and forms, checked in October 2026. It isn't tax advice, and IRS rules and limits change. Parents should ask a tax professional about their own situation. For your program, check your state's licensing rules and ask your accountant what to put on statements.

How BackPR handles it

In BackPR, families get confirmation emails with receipts, and parents can see every payment in their account. Parents can download a year-end statement of what they paid. Check that it shows your EIN (or "tax-exempt") and the dates of care before families use it for their claims. BackPR is free for registered nonprofits: no subscription and no BackPR fees. Payments run through Stripe at Stripe's standard rates.