Dependent Care Credit - Child care fees paid to parents

[achung0315]

Hello community,

I have both of my parents living with me - I pay all the expenses so I claim them as my dependents. I also pay them $500 a month for watching my children time to time - which comes up to be about $6,000 per year. Can I use the $6,000 as my child care expense by listing them as child care provider and claim $6,000 deduction for $1,200 refund, while claiming my parents as dependents at the same time? Since they're grandparents, the FICA rules don't apply and it won't count towards their income? Thank you.

[xmasbaby0]

You cannot get the childcare credit if your childcare provider is being claimed as a dependent on your own tax return.