Can a Dependent Be Cared for by a Relative?

Yes—dependent care can be provided by a relative or non-relative, but there are important IRS restrictions to keep in mind, especially if you plan to claim the Child and Dependent Care Credit.

Who Can Provide Dependent Care?

The caregiver must not be:

• Your child under age 19, even if they are not your tax dependent
• The child’s other parent (if filing separately)
• Anyone you claim as a dependent on your return
• Your spouse

As long as the caregiver is not disqualified under the above rules, they can be a relative, such as a grandparent, sibling, or aunt, or someone unrelated.

See IRS Topic No. 602 for more details

When This Matters

If you’re planning to claim the Child and Dependent Care Credit, be sure the caregiver:

• Meets IRS qualifications
• Was paid for care that allowed you (and your spouse, if filing jointly) to work or actively look for work
• Is not living in your household as your dependent

You’ll also need their name, address, and Taxpayer Identification Number (TIN) to complete Form 2441.

Claiming a dependent on your tax return may make you eligible for valuable tax benefits, such as the Child Tax Credit or the Credit for Other Dependents.

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