Paying grandparent for taking care of kid

[suaujus]

We paid airline tickets for my in-laws in lieu of them taking care of our child (below 12) at our house. Could we claim this as dependent care credit? They are fine reporting that as income when they file taxes.  There is no specific bank deposit or a check that we paid, nor did we issue any W2 to either of them, all we have are credit card statements for the purchased air ticket. Would this be an issue in case there is an audit?

[AnnetteB6]

My opinion that whether or not this would be accepted in an audit would depend on the auditor assigned to the case.  You need to document the reason for the care and be sure to keep the credit card statement as well.  

Also, be aware that in order to claim the child care credit, both you and your spouse must have earned income and you must have paid for the care so that you both could work or look for work.  If you paid for the care so that you could do anything other than work, then you cannot claim the credit.  

See the following TurboTax article to learn more:

The Ins and Outs of the Child and Dependent Care Credit