No, you cannot directly deduct daycare expenses on your federal tax return. However, if you qualify, there's a tax credit designed to assist with daycare costs, known as the Child and Dependent Care Credit.
The Child and Dependent Care Credit enables you to claim a percentage of your eligible childcare expenses. It ranges from 20% to 35% of allowable expenses, capping at $3,000 for one qualifying child and $6,000 for two or more qualifying children (applicable to the 2023 tax year). Consult a qualified tax professional to confirm if your eligibility.