Hi
Regarding below Q&A
Q. it looks like I could just pay her cash/check and she reports and pays taxes for this income.
A. Yes, that is allowed. How she goes about reporting it depends on whether she sits in her home or yours. If she works in your home, she is a household employee. How to enter is described above.
My situation is my mom lives with me, taking care of my daughter. how does she reports and pay taxes for her income. I live in Texas.
Couple of other questions as I still have confusion.
1. I need to generate W2 for her as household employee ..staying with me and she would need to use w2 for her tax file for HealthCare Marketplace Eligibility. In that case do I need EIN to generate W2 for her?
2. I understood I do not have to worry about medicare and ss tax amount as a household employer [nanny tax] . Am I correct ?
2.Can I include the payment I made to my mom in form 2441 as Child and Dependent Care Expenses?
Thanks in Advance
