I know this post is several years old, but it's the only thing I can find that directly touches on the question I'm looking to answer. I just want to clarify that you are saying that even if the babysitter of my children is my parent (and I'm married to their father) and is therefore exempt from SS and Medicare taxes, that exemption is void if I claim a dependent care credit? Seems counter-intuitive since they each benefit separate parties, but my mother was just told this by someone authoritative so we are trying to confirm or deny - and exhaustive searches through IRS pubs yielded nothing of the sort.
