Help with Child and Dependent Care Credit

Forum|Forum|5 years ago
March 13, 2021
2 replies
13 views

Hello, during lockdowns from COVID we used neighborhood babysitters to take care of our kids while my wife and I both worked (essential health-care workers) because the child care centers at the time were closed. These babysitters are teenagers who don't have an EIN and who aren't established businesses. Can we claim this money spent on the babysitters? thank you

macuser_22

Alumni - Champ

Their name, address and SSN is all you need.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

ruse415Author

Level 2

Thanks for the reply. I saw something else on Turbotax suggesting that if the babysitter isn't an established business, I can't claim this expense. But this message from Turbotax is confusing to me. Which is it?

npierson777

Level 10

Yes, you can claim the credit as long as you know the person's SSN and address. It doesn't have to be established business. You have to issue them Form 1099-NEC if the payments were more than $600.

macuser_22

Alumni - Champ

Only businesses in the course of doing business issue 1099-NEC forms - individuals do not.

https://www.irs.gov/pub/irs-pdf/i1099mec.pdf

Trade or business reporting only.Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**