Dependent Care and Child Care Tax

[goodmorningmerica]

Good day,

I have a question. My mother lives with me and is paid 150 a month to care for my son. She is getting no other income and does not and will not be filing taxes. Can I claim her as an adult dependent AND claim the 1800 a year as child care tax without paying FICA taxes? 

I also do not wish to use Form 2441. T

Thanks in advance. 

[xmasbaby0 · Accepted solution]

No.   In order to get the childcare credit you cannot use a childcare provider who is also your dependent.   If your mom is your dependent then you cannot use her to get the childcare credit.    And....the only way you get the childcare credit is on a form you say you do not want to use.   You should be glad you have almost free childcare and forget about getting a tax credit for it.

[AmeliesUncle]

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@goodmorningmerica wrote:

Can I claim her as an adult dependent

AND claim the 1800 a year as child care tax

without paying FICA taxes? 

I also do not wish to use Form 2441. 

---

(1) If you pay for over half of her support, yes, it sounds like you can claim her as a dependent.

(3) Yes, your payments to her are low enough that FICA does not apply for your Household Employee.

(2&4)  I don't understand that.  If you "claim the child care tax" (the Dependent Care Credit), that goes on Form 2441.  There is no reason not to claim the credit if you are eligible for it.  [EDIT] However, as was pointed out above, you are not eligible for it if your mother is your dependent.

[xmasbaby0]

@AmeliesUncle The catch is that one cannot enter a childcare provide on 2441 if that person is also your dependent.  So---- is Mom a dependent OR her paid childcare provider?  Mom cannot be both.

[AmeliesUncle]

Yes, I already edited my post for that.  Thanks for catching that.

And actually, it is if mom is ABLE to be claimed as a dependent, then the Dependent Care Credit does not work out.

[xmasbaby0]

@AmeliesUncle   Exactly.   happy new year!