What documentation is required to claim the Child and Dependent Care Credit?

To successfully claim the Child and Dependent Care Credit, it is essential to have proof of the expenses incurred for care during the taxpayer's employment. This documentation demonstrates that the taxpayer actually incurred eligible expenses for child or dependent care, which is a prerequisite for claiming the credit.

The Internal Revenue Service requires that these expenses are substantiated, typically through receipts or statements that confirm payment for care services provided while the taxpayer worked or looked for work. This aligns with the purpose of the credit, which is to alleviate some of the financial burden related to caregiving while allowing individuals to maintain employment.

While other options might seem relevant, they do not constitute the necessary documentation. For example, a signed letter from the caregiver may provide insight into the arrangement but does not serve as definitive proof of expenses. Tax returns from the previous year and bank statements showing payments, while possibly informative, do not specifically fulfill the documentation requirement for the specific expenses related to dependent care eligible for the credit.