DCAP and child credit

[Jmulza]

I used DCAP this year to pay my daughter’s grandmother for childcare. My question is do I need to report her information on my taxes even if I don’t claim the child care credit? If I have to report it can her grandmother report deductions for all the expenses she incurred while watching my daughter since she used most of the money I gave her on activities and necessities? 

[KeshaH]

Yes you will need to report her information on the Form 2441. Otherwise, if you don't report the expenses and provider details, your benefits will be added back to your income.

If she was running a business as a child care provider, she can deduct any necessary expenses on her return to reduce her income.