Dependent care benefits include amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you worked. For divorced or separated parents, the custodial parent usually claims the dependent care credit even if the noncustodial parent gets to claim the child as a dependent on his or her tax return. Overnight camps do not qualify. Before 1st grade you can deduct all schooling costs as child care costs. However, when the child enters 1st grade, tuition paid must be allocated between educational expense and child-care expense.
Payments made to relatives for child care expenses usually qualify for the credit.
No credit is alowed if the relative can be claimed as a dependent on your tax return or if the relative is your own child who is under 19.