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February 15, 2021
Question

I sent my kids to a person who started a company providing virtual support for school so I was able to work. Does that qualify for the Child Care Credit?

  • February 15, 2021
  • 1 reply
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Kids were enrolled in public school which was virtual.  Support was to make sure they did their school work and she also helped them troubleshoot technology issues so I could work.

1 reply

CatinaT1
February 15, 2021

It depends.  How old are the kids?  

 

To qualify for the Child and Dependent Care Credit, ALL of the following must be true:

  1. Your dependent is listed (and is either under age 13 or is marked as disabled).
  2. You have earned income.
  3. Your spouse (if filing jointly) also has earned income, is a full-time student, or is disabled.
  4. Your filing status is not Married Filing Separately.
  5. You have provided the caregiver's social security or tax ID number.
  6. You must owe tax.

If the kids are 13 or older, this would not qualify in any circumstance.  If they are under 13, Covid makes this a unique situation.

 

IRS Pub 503 specifically states Summer school and tutoring programs aren't for care.  This type of virtual support could be considered Tutoring.  However, the Child and Dependent Care Credit is specifically for Work-Related Expenses and it must be expenses paid so you (and your spouse if filing jointly) can work or look for work.  

 

The IRS would look at all facts and circumstances to determine if this was eligible for the Credit.  Since this is a new situation there is no precedence on how they would rule.  You do have a strong argument when you state the purpose of this was so you could work.

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