Dependent care credit

[Adorelilith]

When i claim the dependent care credit on my taxes, do the people i paid have to report it as income in their taxes? I paid almost $4k in total for 2021 and 75% of it went to one person and the other 25% went to another.

[Opus 17]

Generally, yes.  Whether they actually owe income tax depends on their overall situation.

To claim the credit, you must enter their name and social security number on your tax return, that will cause the IRS to check their return for the matching income.  In addition, if you paid someone to work in your home, they are your employee and you must give them a W-2 if you paid them more than $2200, and you have to pay household employee tax.  (If you paid for care in their home, you have no other tax reporting requirements except to include their name and SSN on your tax return.)

[MinhT1]

To claim the child and dependent care credit, you'll have to provide the SSN and address of the person(s) you paid.

And they will have to report the amount they receive as self-employed income.