Is it true that taking the child-care tax credit can trigger an audit?
• It is true that certain deductions are often red-flagged by the IRS. Unfortunately, child-care expenses are one of them. This is because often people pay their providers in cash and have no receipts to substantiate these deductions so a large claim for childcare credits may invite an audit. Paying by check and getting receipts for costs paid to your provider will come in handy should the IRS come knocking.
