I pay my mother to babysit my daughter. I also pay for more than half of her expenses outside the home. My question is can i claim her as a dependent and claim the childcare credit on her both?

[bwa · Accepted solution]

To claim Mom -

• You would need to provide more than 1/2 of her support.  Amounts you pay for service such as babysitting are not counted in her support, but are money she uses to pay for her own support.
• If she has more than $4,050 in income subject to tax, including babysitting, you cannot claim her as a dependent.

Also, if Mom is your dependent, money you pay her to care for your child is ineligible for the child and dependent care credit.