Daycare Expenses Tax Deduction 2025. However, the deductions for personal and dependency exemptions for tax years 2018 through 2025 are suspended, and, therefore, the amount of the deduction is zero. Overall, these deductions can be used to offset business expenses, not personal expenses or commuting costs.

However, the deductions for personal and dependency exemptions for tax years 2018 through 2025 are suspended, and, therefore, the amount of the deduction is zero. The cliff were pretty steep but were increased significantly for 2021, so a lot more people will be able to claim the 50% on up to $16k expenses for 2 kids (or $8k for one kid), equaling an $8k.