Can i pay my parents for my child care? and how do i claim it?

[lisettepetty · Accepted solution]

I believe the answer is yes. If you itemize deductions, you should be able to claim the child care expenses.

[nikunjkp]

Thank you for your answer, And yes i am filling as an itemize deductions. However, Do i have to notify IRS about this transaction.And do i have to give any kind of Form to my parents for their tax return filling because they do not have any other income in 2018.

[lisettepetty]

Go to IRS.gov and download Publication 503. It will give you all of the details about claiming child care expenses.  You will have to provide their SS# so I think the answer is yes.  I'm not quite sure about whether you need to provide a form to your parents. The only form I can think of would be a 1099-misc. However, I think all they really need to do is file a Schedule C and show the income as a childcare provider. They can also deduct any expenses associated with providing the care. They will be subject to self employment tax if the income is over $600. A good resource is also Publication 17. Hope this is helpful.