@hispanicqt00 wrote:
Thank you! That’s very helpful! I have sitter expenses sometimes for work even though she is 12 because she’s not able to be on her own for more than an hour. It’s just a teen I trust and not a provider. Does this still count as a deductible expense? If I take the standard deduction, does it even matter?
If your child is disabled (per the definition I gave above), and you pay someone else to watch your child so you can work (and your spouse if you are married), then you can apply the care costs toward the credit. Also the credit is allowed for a child who is 12 even if they are not disabled, as long as you pay for care so you can work. The child ages out of the credit when they turn 13, unless they meet the definition of disabled.
Where you might have a problem is with "high functioning". If the child is capable of performing gainful work, but has a personality so they are not mature enough to be left alone at age 13, that by itself does not qualify you to claim the credit. There are lots of kids who probably shouldn't be left home alone, but the dependent care credit doesn't apply once they turn 13, even if they aren't mature enough. It comes down to the tax definition of disabled, which is based on the concept of being able to work for a living (even if the person is not presently employed, are they able to be employed.)
Specifically for the child and dependent tax credit, that is separate from the standard deduction. The credit is is 20%-35% of the first $3000 of qualifying care costs, which works out to $600 for most people. The provider does not have to be a day care professional, but you will have to give the IRS the SSN of the care provider, and the IRS will look for matching income on the care provider's tax return, so if they have been expecting to not pay taxes on this income, that might be a rude awakening. Your state may also have a dependent care credit if you claim the federal credit.
