Part 1 Tax Credits question: payments qualify for the dependent care credit

Part 1Tax Credits

Tina pays her 19-year-old daughter, whom she does not claim as a dependent, to care for her 8-year-old son while Tina works. Do the payments qualify for the dependent care credit?

A Yes, but only if the daughter is a licensed provider
B No, as the daughter lives in the same home as the child she cares for
C No, because payments to any relative of the child never qualify
D Yes, because the daughter is 19 and not Tina's dependent

Show the answer and explanation

Answer: D. Yes, because the daughter is 19 and not Tina's dependent

Payments to a relative can qualify unless the provider is the taxpayer's dependent, the taxpayer's spouse, the parent of the qualifying child, or the taxpayer's own child under age 19 at year end. Tina's daughter is 19 and not a dependent, so the payments qualify if the other tests are met, and Tina reports her SSN on Form 2441. Source: IRC 21(e)(6); Pub. 503 (2025), Payments to Relatives or Dependents. Tax year: 2025 (law as of 31 Dec 2025).

Common mistake

Assuming payments to family members never qualify.

Practice more Part 1 Tax Credits questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practicing →

Study note: Tax Credits Part 1practice questions & mock exams

Related Part 1 practice questions

Kai is in his fifth year of college in 2025. AOTC was claimed for him in each of the prior four years. He is enrolled at least half time. Which education credit is available for his 2025 tuition?Raúl has an ITIN and his wife has an SSN valid for employment; they file jointly for 2025. Their 6-year-old daughter has an SSN. Can they claim the child tax credit?Dana is single and pays all the costs of her own home. Her widowed mother lives all year in a nursing home, and Dana pays more than half of that cost. Her mother's only income is $4,100 of interest. What is Dana's best 2025 filing status?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practicing →

Original study material mapped to the public IRS SEE content outlines; not a real exam question.Not affiliated with or endorsed by the IRS or PSI. Verify figures and rules against current guidance before relying on them.