My in-laws decided to pay for my kids childcare directly. Do I still provide amount paid to provider on Form 2441?

[stevelander]

I had money set aside for the Dependent Care Flexible Savings Account, but my in-laws decided to pay the daycare directly. I was able to get my DCFSA money out, but now filling out the 2441 it's asking why I put "0.00" for expenses. It's unusual, but pretty sure I cannot put the expenses incurred by my in-laws as my Daycare expenses.

[xmasbaby0 · Accepted solution]

Actually--you can.    They cannot claim the daycare on their own return because they cannot get childcare credit for a child not claimed as a dependent on their own tax return.   Your in-laws gave you a gift---you can claim the childcare credit that was paid by that gift.  Gifts are not taxable and do not have to be reported on your tax return.

[stevelander]

Great! Thanks for the help! I didn't consider that as a gift, but makes sense. Appreciate it!

[Hal_Al]

I agree with @xmasbaby0 , you can claim the dependent care credit, based on that gift  payment.  However, it would be better, for "proof" purposes, in the future,  if they gave you the money and let you make the payment.