My wife earned $4800 babysitting our 1 year old grandchild. The baby's parents do not deduct for this on their taxes. Do we need to pay income taxes and ss taxes on this?

Forum|Forum|3 years ago
December 12, 2022
4 replies
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Critter-3

Level 15

Personally ... if you do no watch any other kids and they will not apply for the day care credit then I would consider this a gift and not report it on any tax return.

Mike9241

Level 15

@Critter-3 the wife did perform services. therefore, it's hard to justify calling it a gift. should the parents later decide to claim the expense, this will cause tax problems for the grandparents. but it's really up to them to decide.

Mike9241

Critter-3

Level 15

This is a discussion you need to have with the parents of the child ... but if they don't "turn you in" by using the form 2441 day care credit how is the IRS ever going to know ??? Anyone can give anyone up to $16K per year as a non reportable gift.