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February 9, 2025
Question

Can I still receive a child care tax break if I am paying my relative and they do not claim my payment as income on their taxes?

  • February 9, 2025
  • 3 replies
  • 0 views
My sister is caring for my child while I go to work and does not have any other employment. She does not want to claim any income on her tax file.

    3 replies

    VolvoGirl
    Employee
    February 9, 2025

    Well you have to enter her ssn on your return.  Then the IRS will probably ask her if she doesn't report it.  

    February 9, 2025

    In order to claim the Child and dependent care tax credit, you have to enter the caregiver's SSN on your tax return.

     

    When you do this, the IRS knows that your sister has been paid the amount that you claim.

     

    If she does not report this income, she might get a letter from the IRS.

     

     

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    DoninGA
    Employee
    February 9, 2025

    Whether or not the caregiver reports their income is not your problem.  You report the amount paid, caregiver name, address and Social Security number of the caregiver on your tax return.