@maheshpujara wrote:
Thanks a lot @Opus 17 , that was super useful, appreciate it, I would go through the IRS publication docs.
If I may ask one more follow-up please, for reporting taxes for home day care business, does my wife need to obtain a Employer Identification Number (EIN) or tax ID number ? or she can use her Social Security number ?
She runs the day care and we file the joint returns, if that matters.
She is required to use an EIN for the business if she pays other employees. If there are no other employees, she may use her SSN. However, many small business owners will get an EIN anyway, for privacy reasons. As a day care provider, any parent who wants to claim the child care credit will need the tax number (SSN or EIN) of the provider.
She can get an EIN for free online.
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n...
