- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
A couple of other thoughts:
Because your wife does not work, you do not qualify for the Child Care Credit (unless your wife is a full-time student or disabled enough that she can not care for herself.
It would actually result in less taxes if your mother ONLY came to your home, and you did NOT drop the child off at her home. That would probably make her a "Household Employee", but as your parent watching your child she would be exempt from Social Security and Medicare taxes.
On the other hand, it may be better to continue this arrangement so she builds up "credits" with Social Security, and that would qualify her for Social Security when she is old enough and/or increase the amount of Social Security payments that she receives.
Because your wife does not work, you do not qualify for the Child Care Credit (unless your wife is a full-time student or disabled enough that she can not care for herself.
It would actually result in less taxes if your mother ONLY came to your home, and you did NOT drop the child off at her home. That would probably make her a "Household Employee", but as your parent watching your child she would be exempt from Social Security and Medicare taxes.
On the other hand, it may be better to continue this arrangement so she builds up "credits" with Social Security, and that would qualify her for Social Security when she is old enough and/or increase the amount of Social Security payments that she receives.
May 31, 2019
6:13 PM