What Qualifications Are Required for Child Care Tax Credits?

Your babysitter can be tax deductible under certain conditions.

If you paid someone to take care of your dependent while you were working or looking for work, you may qualify for the Child and Dependent Care Credit. You, your spouse (if applicable) and your child must meet the IRS criteria. You must file a Form 1040, 1040A or 1040NR.

Filing Status

If married, you must file jointly. Both spouses must work, unless one spouse is a student or suffers from a physical or mental condition that hinders her ability to care for herself.

Qualifying Dependent

To qualify, the child in care must be under the age of 13. Dependents in care (including a dependent spouse) must reside with you for more than half of the year and not be able to take care of themselves mentally or physically.

Caretaker Status

The caretaker cannot be a dependent, your spouse or the parent of the qualifying child. He can be an older child, however, but he cannot be your dependent and must be 19 by the end of the year.

Caretaker Disclosure

You must disclose your caretaker's information including name and address, as well as her Social Security number, if she is not tax exempt.

Credit Amount

You may receive a tax credit for up to 35 percent of qualifying expenses.

References

• IRS.gov: Publication 503 -- Child and Dependent Care Expenses