Keeping Up a Home

In order to meet this test for the child and dependent care credit, you (and your spouse, if married) must pay at least half of the expenses of maintaining your household for the year, and the qualifying individual must live there with you.

The costs of maintaining a household include:

• food eaten at home
• home repairs
• homeowner's or renter's insurance
• mortgage interest
• property taxes
• rent
• utility charges

Costs of maintaining a household do not include:

• clothing
• education
• life insurance
• medical treatments
• mortgage principal
• permanent improvements or replacement of property
• transportation
• vacations and recreation

Living in the home. Individuals are considered to be living in the home if it continues to be their main home, even if they are temporarily away because of illness, school, business, vacations, military service or a custody agreement. So, either you or your qualifying person can be temporarily absent without failing this requirement.