Deductions & credits

Of course, let me share my situation, and maybe you can help.

 

In my case, grandma flew from Turkey to take care of my child at my home. She stayed with us. She is neither a US resident nor a US citizen. She stayed in the US for less than 180 days and is a nonresident alien. She has no SSN or ITIN.

 

I paid her for her childcare services (with a receipt) so she could afford her plane ticket. I had this amount reimbursed from DCFSA. 

 

However, I later realized that my mother would be considered self-employed and would have to file a tax return if her net earnings exceeded 400 USD. Since my mother is not a US resident, she returned to her home country, but she plans to come back next year to look after your child.

To avoid my mother having to file a tax return, she must have costs that can offset her income. She made expenses for my child, such as grocery shopping, toys, and other items. However, we don't have the receipts or documentation to support these expenses. Since it's still the same calendar year, she can still make more expenses, but I'm not sure if they will count.

My goal was to prevent my mother from having to file a tax return (and get an ITIN, which would be a huge hassle for her) because she wasn't looking to make a profit, and I only paid her to help with her costly flight ticket from Europe.

And I guess whether or not she files a tax return, I'll have to put her ITIN on my tax return since I'm using DCFSA.

 

Worst case, I will return the money I received from DCFSA reimbursement to DCFSA account, and find other ways to use this money.  

 

Thanks in advance!