topic My mother receives SS disability but I paid her for child care, can I use this for child care expenses? in Deductions & credits

My mother receives SS disability but I paid her for child care, can I use this for child care expenses?

jphae89 — Thu, 06 Jun 2019 13:50:18 GMT

Are you claiming the child that is in day care as a depe...

Critter — Thu, 06 Jun 2019 13:50:20 GMT

Are you claiming the child that is in day care as a dependent ? Or is your mom who is in day care ? If so are you claiming her as a dependent ?

See the rules here on who is a qualifying person for the credit ... <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i2441.pdf">https://www.irs.gov/pub/irs-pdf/i2441.pdf</a>

Is Mom also receiving SSI (Supplemental Security Income)?...

SweetieJean — Thu, 06 Jun 2019 13:50:22 GMT

Is Mom also receiving SSI (Supplemental Security Income)?
<a rel="nofollow" target="_blank" href="https://www.ssa.gov/pubs/EN-05-10095.pdf">https://www.ssa.gov/pubs/EN-05-10095.pdf</a>

Yes, you can count the money you paid your parent to clai...

Hal_Al — Thu, 06 Jun 2019 13:50:24 GMT

Yes, you can count the money you paid your parent to claim the child care credit. You will have to provide the IRS your mother's SS#. Your mother may have to report the income, on her tax return.

Your next question might be: will this affect my mom's SS benefits. No. See https://www.fool.com/retirement/general/2016/05/16/can-you-work-while-receiving-social-security-disa...

How you mother treats the income, depends on where she works, your home or hers. If she works in her own home, her income is self employment and she will definitely have to file a tax return and pay self employment (social security & medicare - FICA) tax, if not actual income tax. If she works in your home, her income is household wages, and not subject to FICA, because she is your parent*. She will not have to file a tax return if the amount is less than $6350.

If your mother is your tax dependent, you are not allowed to claim the child care credit with what you paid her.

*If all of that wasn't complicated enough, your mother is subject to FICA if both of the following apply: (a) your child lives with you and is either under age 18 or has a physical or mental condition that requires the personal care of an adult for at least four continuous weeks in a calendar quarter, and (b) you are divorced and have not remarried, or you are a widow or widower, or you are married to and living with a person whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in a calendar quarter.

Good catch ... somehow I read "paid for her" child care....

Critter — Thu, 06 Jun 2019 13:50:26 GMT

Good catch ... somehow I read "paid for her" child care. LOL

The care provider can't be your spouse, the parent of you...

SweetieJean — Thu, 06 Jun 2019 13:50:28 GMT

The care provider can't be your spouse, the parent of your qualifying individual, your child who is under the age of 19, or a dependent for whom you or your spouse may claim an exemption on your return.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc602">https://www.irs.gov/taxtopics/tc602</a>
So, if Mom CAN be your dependent, it doesn't matter whether you claim her as a dependent or not. You cannot take the Child Care Credit.

Im not seeking to use my mother as a dependent... I quest...

ccredding365 — Thu, 06 Jun 2019 13:50:29 GMT

Im not seeking to use my mother as a dependent... I question if I can get credit for the money I paid her to watch my kids... Also stated she is on SS disability and child care is no more than $600 for the year.

So for a credit of no more than $180 you will force your...

Critter — Thu, 06 Jun 2019 13:50:31 GMT

So for a credit of no more than $180 you will force your mom to not only file a return but also pay SE taxes of $85 ... seems like a big waste of time, effort & money for little reward. Consider the money a gift and carry on.

Thanks Critter#2....

ccredding365 — Thu, 06 Jun 2019 13:50:33 GMT

Thanks Critter#2....

Re: My mother receives SS disability but I paid her for child care, can I use this for child care expenses?

SimplyMe1 — Mon, 31 Jan 2022 14:31:57 GMT

So what if she doesn’t work. Do she have to file just so that money I paid her gets reported?

Re: My mother receives SS disability but I paid her for child care, can I use this for child care...

Cynthiad66 — Fri, 04 Feb 2022 19:08:58 GMT

Yes. The parents will be claiming the Dependent care credit the mother has to report the income.

She can report it as self employment, if she wants to earn social security benefit. Alternatively, you could be classified as a household employee (since you only worked in their home). There is normally a $1900 limit for a household employee not to be subject to FICA (social security & medicare) tax. But that limit is not applicable to the taxpayer's parent.