Originally Posted by daycarediva:
I just had a grandparent write a check for their grandchild's daycare for the month of December as a Christmas gift to their son and daughter in law.
I've never had that happen before. I obviously cannot put that on their deductible total for the year, right?
I have grandparents a receipt and grandma asked if she could deduct it. I'm assuming no- they're not her dependents. Maybe as a gift? Idk.
Payment by the grandparent cannot be claimed by the parent towards the parents child care tax credit. The grandma can't claim the child care tax credit because the child is not their dependent. It's a gift from them, but there is no tax benefit to the grandparents. You must report it as income.