In 2020 Turbotax Premier, in the Child and Dependent Care Credit section, it states the following:
Does my friend or relative count as a care provider?
Yes, your friend or relative counts as a care provider as long as they are operating a business. This business must either be operating using an Employer Identification Number (EIN) or be using the Social Security Number (SSN) of the business owner.
This business must be declared on that person's own tax return as a Schedule C, or the business has its own tax return. The only businesses operating without an EIN or SSN are tax-exempt organizations or foreign companies.
Otherwise, the services of a friend or relative or part-time babysitter (for example) won't count for this credit.
However, I am not seeing this in the IRS publications on Form 2441 that states that the relative providing the child care must be operating as a business in order for me to claim this credit. Can someone point me to this information from the IRS site? Thanks
