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February 20, 2022
Question

Dependent care credit?

  • February 20, 2022
  • 1 reply
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I live in Washington State. My sister lives in Oregon. I had to travel for work during one month in 2121 and my daughter stayed with my sister in Oregon for that time. Will this qualify for dependent care credit?

1 reply

LeonardS
February 20, 2022

Yes, it could qualify for the dependent care credit.  If your sister does not operate a child daycare facility you will have to use your sister's social security number when you file your tax return and claim the dependent care credit.  Your sister would have to report this income on her tax return.  If she does not report the income the IRS will contact her at some point in the near future asking why she did not report the income from providing child care services.

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Suzie11Author
February 20, 2022

Thanks for the help! I got one more question to ask. 

Won't  the fact that we live in 2 different states throw up a red flag in the IRS computer algorithm?

LeonardS
February 20, 2022

No, where the child care is provided will not throw up a red flag in the IRS computer algorithm.

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