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daycare

My sister is doing her taxes, she paid a friend cash for random times they watched her kid while she worked. She noticed she needs a social security number, will putting her friends social mess up their taxes when they do there's ?

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2 Replies

daycare

Not sure what you mean by "mess up" their taxes.  If your sister uses the child tax credit on her tax return she has to enter the Social Security number or Tax ID of her childcare provider.  The IRS matches that up with income reported on a tax return by that childcare provider----so the babysitter must file a tax return and report that income.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
AnnetteB6
Employee Tax Expert

daycare

It is possible that both your sister and her friend could be contacted by the IRS requesting further information about their tax returns.  As stated by xmasbaby0, the IRS uses a matching system to be sure that credits and income are claimed correctly and on both tax returns (the one claiming the credit and the one claiming the income).  

 

Since the payments for childcare were made to the friend in cash, both parties will also need records showing the dates and amounts paid.  This would be important in the event that the IRS requests the information from either party.

 

@chanson799

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