Thanks for your comments, but I think there are a few points that need clarification for completeness.
According to Publication 926, parents are not considered household employees except in special cases and W2 is not required.
Again, according to the IRS, I can pay my parents for child care. It can only be an opinion that it counts as family support but does not qualify for the DCFSA. According to the IRS, this is possible and legit.
In this case, my mother can make a tax return by getting an ITIN, I agree. What if my mother's expenses for childcare are more than her income, and her total earnings are less than 400 USD?
The IRS does not issue ITINs without tax returns for NRAs. In this case, I understand that a tax return must be made to obtain an ITIN, even if net earnings are below 400 USD. And my mom has to do this in January so that we get the ITIN before my tax return in April.
My question is; can expenses be incurred in October 2023 for earnings in May 2023? As a self-employed person, can she deduct October 2023 expenses from her May earnings? And again, can she deduct the costs she incurred in May 2023 (but whose documents we have not kept) from her earnings?
Thanks!
