i pay my sister cash to babysit while i work, can i claim that without providing her social security number??
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No. If you want to use the child and dependent care credit you have to provide the SSN or Tax ID of your childcare provider. Then it is the responsibility of that person to report their income on a tax return. The IRS cross checks to see if your amounts match
https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit
If your SIL does not want to give you her Social Security number, she can get a Tax ID from the IRS for you to use.
https://www.irs.gov/individuals/individual-taxpayer-identification-number
@xmasbaby0 wrote:
If your SIL does not want to give you her Social Security number, she can get a Tax ID from the IRS for you to use.
https://www.irs.gov/individuals/individual-taxpayer-identification-number
Perhaps. If care is provided in the sister's home, she would likely be considered self-employed. She could use an EIN instead of a social security number.
However, if the care is provided in your home, she is probably a household employee. You must issue a W-2 if the amount of wages paid over the year is more than $2200, and you must pay household employee's tax.
Depending on your sister's other financial circumstances, she might or might not owe income tax on the money paid for babysitting, but you have to report it with her SSN and then she has to figure our her tax responsibilities.
Does your sitter come to your home to take care of your child?
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