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    lalji's Avatar
    lalji Posts: 81, Reputation: 2
    Junior Member
     
    #1

    Nov 28, 2015, 10:16 AM
    Child and dependent care credit
    Hello,

    My filing status is married filing jointly with my spouse. I have a three year old dependent. My spouse does not work but she had a surgery earlier this year and we hired a nanny to take care of my child. Am I eligible for child and dependent care credit? Thanks.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
     
    #2

    Nov 28, 2015, 10:39 AM
    Yes, but you need to provide information on the nanny, who must be either an employee of and paid by an agency, or your employee, even if referred by an agency. Claiming that she was self employed may trigger an audit, and it's possible that she didn't qualify as self-employed. You will have to provide her with the same reporting you file with your return, and that could mean quite a bit of taxes for her to pay... so you need to decide based on those factors, what the 'arrangement' with the nanny was, and how long employment lasted.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Nov 28, 2015, 02:56 PM
    All that Joy states is accurate. Daycare that is needed if one of the parents is physically unable to provide care IS eligible for the DayCare Credit.

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