Unemployed grama

[Pattyayala76]

I work part time and pay my mother who takes care of my 5month old son 200-250$ Weekly in cash. She is unemployed. Will she be able to file taxes? Will she have to pay anything extra? Will i have to pay anything extra? Will it affect my taxes return?

[xmasbaby0]

Since you are paying someone to take care of your child so you can work, you can enter the amount you pay for childcare in the section to get the childcare credit, which would lower the amount of tax you owe.  But to enter it, you must provide the SSN or Tax ID of the person who provides the childcare for you.  That person must pay self-employment tax  if she has earned over $400 in the tax year.

We need more information though.  Does your mom live with you?  Do you claim her as a dependent?  If so, you cannot claim the childcare credit if the childcare provider is your dependent.   Does Mom take care of your child in your home or does she take care of your child in her own home?

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit