According to the IRS, a qualifying individual for the child and dependent care credit is:
- Your dependent qualifying child who was under age 13 when the care was provided,
- Your spouse who was physically or mentally incapable of self-care and lived with you for more than half of the year, or
- An individual who was physically or mentally incapable of self-care, lived with you for more than half of the year, and either: (a) was your dependent; or (b) could have been your dependent except that he or she received gross income of $4,700 or more, or filed a joint return, or you (or your spouse, if filing jointly) could have been claimed as a dependent on another taxpayer's 2023 return.
Physically or mentally not able to care for oneself - An individual is physically or mentally incapable of self-care if, as a result of a physical or mental defect, the individual is incapable of caring for his or her hygiene or nutritional needs or requires the full-time attention of another person for the individual's own safety or the safety of others.
In order for you to claim the Dependent Care Credit, your parents would have to live with and be supported by you, and would qualify as your dependents except for the gross income test ($4,700 for 2023 per person), as well as meet the other qualifications above,
If all of these tests are met, you can enter the expenses you paid in the Deductions and Credits section of TurboTax on your return and complete the interview questions to determine whether you are eligible for the credit. See this TurboTax tips article for more information.
If you are paying a household employee directly, who is not employed by an agency, then you would need to file Schedule H with your tax return, and you have responsibility for paying and reporting employment taxes. See this TurboTax tips article for more information,
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