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Can a grandparent claim deductions if they care for grandchild full time?
I take care of my 17 month old grandson full time without getting paid. Can I deduct any expenses incurred as a result of taking care of him, such as diapers, wipes food, home heating and cooling?
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Can a grandparent claim deductions if they care for grandchild full time?
If you are being paid to take care of him you can file the income as self-employment income and enter your expenses on a Schedule C. But you say you are not being paid. Sorry, you cannot get a tax deduction for being a generous grandparent.
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Can a grandparent claim deductions if they care for grandchild full time?
In addition to the information explained by @xmasbaby0, it is important to note that if your state requires you to have a license for a "daycare", you may not be able to deduct your "home office" expenses (the percentage of your home used for the daycare). This would apply to deducting a portion of your utilities as well. I am not sure what state you are located in, but it is recommended to check your state laws on license requirement if you choose to go this route.
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