Is it true that taking the child care tax credit can trigger an audit?
One area that the Internal Revenue Service scrutinizes is child care expenses. Many people pay cash for child care and may not have adequate records for the credit. If you do pay for child care, the IRS wants to make sure that the provider includes the payments in her income. If you always pay for child care by check and insist on getting a receipt, you’ll protect yourself should the IRS question your tax credit. It’s impossible to make your tax-return audit proof, but it helps to know that claiming certain tax breaks can increase your chances of being red-flagged.
