Thank you. Sounds dicey still. I’m a sole proprietorship. I wouldn’t take child car tax credit as that would seem to emphasize that her role is as nanny/baby sitter and not as employee. I’m looking for ways to reduce taxable income legitimately by reasonably and legally paying my children as employees, as you referenced in your response. It seems logical that I can pay her as an employee to do the work, but I see how it gets complicated if the childcare is a benefit to me, the owner. Clear as mud.
