Are child care expenses paid to a family member eligible for the Child Care Credit?

Yes, child care expenses paid to a family member can be eligible for the Child and Dependent Care Credit if the family member isn't your spouse, the parent of your qualifying child, or your dependent, and you meet all the other tests to claim the Child and Dependent Care Credit. Your family member will need to report the child care income they received on their own tax return.

If your child (including stepchild or foster child) provided the care, he or she must have been age 19 or older by the end of the year, and he or she can't be your dependent.