How will I be able to claim the "Child and Dependent Care Credit" if I was the one that was paid to?

Forum|Forum|2 years ago
November 9, 2023
1 reply
16 views

I am the person who was paid to care for the families children as He/She needed care while they were at work.

TurboTax Live Self Employed

Best answer by NCperson

Expert Reviewed

@kristykuanoni808 - the cargiver isn't eligible for the credit. The parents are.

NCpersonAnswer

Level 15

Expert Reviewed

@kristykuanoni808 - the cargiver isn't eligible for the credit. The parents are.

xmasbaby0

Level 15

You do not get the child and dependent care credit. The parents who paid you are the ones who can use that credit on their tax return. You have self-employment income and you have to report the amount they paid you on your own return. The amount you enter on your tax return has to match what they entered on their return. They enter either your Social Security number or your Tax ID on their return, and the IRS matches those amounts up with the amount you put on your return.

You have to use either online Self-Employed software or any version of the desktop software in order to prepare your Schedule C for your business expenses.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Opus 17

Level 15

@xmasbaby0 wrote:

You do not get the child and dependent care credit. The parents who paid you are the ones who can use that credit on their tax return. You have self-employment income and you have to report the amount they paid you on your own return.

@kristykuanoni808

If you are the caregiver, you received income for your services and must pay income tax. How you pay depends on whether you are considered a self-employed provider or their employee. If you provided care in your home, you are usually considered self-employed. However, if you provided care in the family's home according to their schedule, you are their household employee, not self-employed. They are required to withhold and pay household employee's tax, and issue you a W-2. (The rules are slightly different if you are also a family member.). The difference between reporting your income as a household employee or self-employed is that you will pay about 7.5% more tax as self-employed.