I am paying my cousin for childcare to take care of my child, Can I use my cousin as a childcare tax credit if she is being claimed as someone dependent?

[MinhT · Accepted solution]

Yes, if you paid child care expenses to your cousin, you can claim the amount on your tax return, even if your cousin is claimed as a dependent. You'll need to give your cousin's name and SSN on your return.

Your cousin is required to file her own tax return and report the amount she earned from you as self-employment income if it is more than $400. As the IRS has the amount you claim as child care, your cousin's name and SSN, they will be expecting a tax return from her.