Level 4
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Deductions & credits

We are planning to bring a grandparent to our home for a month to take care of our 2 children for about 6 weeks later this year. We pay for her travel, food, and she stays in our home. Can we use the Child and Dependent care credit (35% credit on up to $6,000) to pay for these expenses? If yes, travel and food are clearer, but since we also give her space to live during that time, can we charge a portion of our rent as an expense as well?

 

Also, since we have a Dependent Care Savings account, lets say we have money left over, could we use that to pay for these expenses?

 

Lastly, is there any other tax deferral/credit mechanism to use to pay for these expenses?

 

Thanks!