Who is eligible to claim the childcare expense deduction when more than one person supports a child?

The correct answer states that the lower income earner must claim the childcare expense deduction, subject to some exceptions. This is based on the tax rules surrounding the childcare expense deduction, which aim to discourage high-income earners from claiming deductions that could be utilized by those in lower income brackets.

In most cases, the tax code encourages the lower income earner to claim the deduction in order to maximize the benefits of the deduction for the family as a whole. This approach aligns with the intent to provide equitable tax relief and recognizes that lower income earners may face greater financial strain.

While there are circumstances under which exceptions may apply (such as if one parent is attending school full-time or not in the labor force), the general guideline emphasizes that the deduction is designed to be claimed by the person with the lower reported income. This ensures that families can benefit from the deduction in a way that supports financial stability.

In distinguishing from other choices, the second option implies an absolute requirement with no exceptions, which is not entirely accurate as there are situations where exceptions do apply. The third choice incorrectly assigns the deduction solely to the higher income earner, which doesn't align with the tax strategy that aims to support lower income families. Lastly, the idea of splitting the deduction between