Q&A: Can Child Care be Paid to a Relative?

Question:  Can a tenant pay a family member and count that as a childcare expense, and get a deduction for it?  How does a person prove that a family member is not available to care for the children?  Can you pay another person who lives in the apartment?   Michele in Texas

Answer: In order to count as a Child Care expense, payment must be made to a person who doesn’t live in the unit.  If the child care provider is a relative who doesn’t live in the apartment, payment is counted as a Child Care expense after proper verification.  The family doesn’t have to prove that no one in the unit can adequately care for the child; it’s just a decision that the family makes.  All of the details about Child Care expense can be found in the 4350.3 Handbook, paragraph 5-10 B.