topic child care deductibles and older parents in Deductions & credits

child care deductibles and older parents

ania27279 — Wed, 11 Feb 2026 10:04:15 GMT

Hello,

I have 3 children, ages 1,5 yr old, 8yrs old and 10 yrs old. What can I deduct? Would I be able to deduct diapers, clothing, school supplies and etc.?

Also, my parents live with me and I'm helping them financially and with transportation to doctors, and etc. Their retainment is very low. Can I add them as my dependable?

And one more question. If I will pay my mom for a childcare while I'm working, can I deduct it as childcare costs?

Thank you!

Re: child care deductibles and older parents

K M W — Wed, 31 Jul 2024 17:47:52 GMT

Generally speaking, expenses incurred in connection with your children are not tax deductible. However, there are a few tax credits that you may be eligible for. The first one is an Education Credit, but given the ages of your children, you are a long time away from that. However, if you pay someone to watch your children while you ()and your spouse, if married) work, you may be eligible for the Child and Dependent Care Credit. This credit is calculated as the smallest of:

$3,000 ($6,000 for two or more qualifying persons)
20-35% of the qualified expenses incurred and paid in the current year (where you fall in the 20-35% range is dependent on your Adjusted Gross Income)
Taxpayer's earned income
Spouse's earned income.

Generally, a married couple must file a joint return in order to take this credit, although there is an exception to this rule. You can find more details about this credit in IRS Publication 503, Child and Dependent Care Expenses, found here: IRS Publication 503

Costs you incur to support your child, such as diaper's, clothing, food, etc. cannot be deducted on a tax return.

You also asked if you can claim your parents as dependents - for you to claim them, they must meet the rules of being a qualifying relative. The four tests are

Not a qualifying child test
Member of household or relationship test
Gross income test
Support test

You can find detailed about each of these tests in IRS Publication 501, located at this link: IRS Publication 501

In your case specifically, I presume they are not the qualifying child of anyone else, and you mentioned that they live with you so they also meet the second test. That leaves the last two tests that you need to review: For the Gross Income test, the person's gross income must be under $4,700 for 2023 (increased to $5,050 for 2024). Gross income is defined as all income in the form of money, property, and services that isn't exempt from tax. So, depending on how much retirement and other income they each have, they may or may not meet this test. The last test you have to review is the support test - you generally must provide more than half the person's total support during the calendar year. Again, for further information and specifics on how to calculate total support paid, you can refer to IRS Publication 501.

So, if each of your parents meets the above rules, yes, you can claim them as dependents on your tax return.

Finally, you asked about paying your mom to watch your children while you work. If you did so, you would not be able to "deduct" the costs you pay, but you may be eligible for the Dependent Care Credit discussed earlier. However, you may be in a catch 22 situation here: be aware that you cannot claim this credit if you are paying someone who is your dependent. In other words, if your mom meets the rules to be your dependent, and you pay her to watch your children while you (and your spouse, if married) work, those payments will not qualify for this credit.

Also remember, any amounts you pay your mom to watch your children would be considered taxable income to her, so depending on the amount, paying her may mean that she no longer meets the Gross Income test to be your dependent.

Re: child care deductibles and older parents

SwapnaM — Wed, 31 Jul 2024 17:59:16 GMT

For your children, you would be eligible to claim Child tax credit, Child & dependent care credit, EITC(based on income)https://turbotax.intuit.com/tax-tips/family/tax-exemptions-and-deductions-for-families/L0Nx5Tnxi

You cannot deduct expenses for diapers, clothing etc.

Rules for older parents as dependents:

Qualifying relative

Many people provide support to their aging parents. But providing some support doesn't mean you can claim a parent as a dependent. Here's a checklist for determining whether your parent (or other relative) qualifies.

Do they live with you? Your relative must live with you all year as a member of your household or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
Do they make less than $4,700 in 2023 ($5,050 for 2024)? Your relative can't have a gross income of more than $4,700 in 2023 and be claimed by you as a dependent. This threshold increases to $5,050 for 2024. Certain income is excluded from this requirement such as all or part of Social Security benefits.
Do you financially support them? You must provide more than half of your relative's total support for the year.

Yes, you can pay your mom to take care of your children while you are working(if you mom is not your dependent) You can deduct them as child care expenses & get the credit .You will need to provide your mother's SSN to get the credit. Also, she would need to report it as self-employed income on her return.

@ania27279 Thanks for the question!