Yes, you can claim your child care expenses. However, you will be asked for the name and social security number of the person who provided the care.
You may be required to issue your mother-in-law a W-2. Below are the rules for hiring a parent.
If the parent is performing services for the child, but not for the child’s trade or business:
- Payments for services of a parent are not subject to social security and Medicare taxes, unless the services are for domestic services and each of the following apply:
- You employ your parent,
- You have a child or stepchild living in the home,
- You are a widow or widower, divorced, or living with a spouse, who because of a mental or physical condition, can't care for the child or stepchild for at least 4 continuous weeks in a calendar quarter and
- The child or stepchild is either under age 18 or requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition.
- Payments for services of a parent are not subject to FUTA tax regardless of the type of services provided.
