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Turn nondeductible support into child care credit

by on
in Small Business Tax

If an elderly parent or in-law is having trouble making ends meet, you might help him or her pay the rent or other expenses. In return, Grandma or Grandpa may gladly volunteer to watch your children while you and your spouse work. Unfortunately, you probably can’t claim a dependency exemption for this trade-off, but you still can reap a big tax benefit from the arrangement.

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