Using a Relative for Child Care

Using a relative to provide child care while you work or attend school may be an ideal child care solution. A relative already knows you and your child, they are often someone you already trust, and frequently a relative is more flexible and affordable than other child care options.

Maintaining a personal and/ or professional relationship with your relative caregiver is important. Most parents and relatives begin their relative child care arrangements with high hopes and warm feelings. However, using a relative for child care can become complex by complicating your personal relationship with your relative in unexpected ways.

Consider some of the following as you begin a business/professional relationship with your relative caregiver.

1. Develop a contract agreement including the amount you will pay and when; drop off and pick up times; vacation and holiday schedules; health and safety procedures; emergency information; behavior and discipline policies.


2. Be clear about your expectations regarding the child care arrangement. Do you want your relative running errands with your child? Do you want your relative cooking, doing laundry and cleaning their house while your child is there? Do you want your relative to care for other children?


3. Communicate with your relative caregiver weekly to make sure things are going smoothly and the arrangement is working for both of you.


4. Extend courtesy, respect and appreciation to your relative caregiver. Express your appreciation for the love and care that your child receives while in their care.

Some relative caregivers will not accept money when caring for a relative. If you don't pay your caregiver, then show your appreciation in non-monetary ways. If you do pay your relative, remember to keep accurate records and receipts if you plan to apply for the Earned Income and/or the Dependent Care Tax Credit.

Family earnings and tax credits will vary from year to year. To learn more about these tax credits ask your accountant, the IRS at 1-800-829-1040, or log on to the American Business Collaborative website at: www.irs.gov.