Deductions & credits

In regards to the Child & Dependent Care Credit, you can claim the amount of child care costs paid to your mother in law since she is not limited as a provider per the attached guidelines.  You will need to report her name, address, and identification number (SSN or EIN) on your return.

Child & Dependent care requirements

Your mother in law will need to report the income on her return as self-employment income.  She can select that she was paid in cash or checks if she was not issued a 1099-Misc.

She would not be considered a household employee unless she met the following requirements:

• Care for a child under 18 who has a physical or mental condition needing care for at least 4 continuous weeks
• Your marital status is either divorced, widow, or living with a spouse with a condition which prevents them from caring for the child