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KelpsCA
New Member

Grandparent childcare shared home

I pay my mother to watch my daughter. My mother and I own our home as joint tenants. So she works in her home and my home. How should we each report this? 
Thanks!

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3 Replies
ThomasM125
Expert Alumni

Grandparent childcare shared home

One of you can claim head of household (HOH) status which will save you money on your tax return. For that, you need to furnish over half the cost of the home your live in. I would assume that would be you, since you are working and it appears your mother stays home.

 

For HOH you would also have to list your child as your dependent on your tax return, so it looks like you will file as HOH.

 

You could get a child care credit for the money you pay your mother, but she would have to report that money as income, which would cost her more than what you would save.

 

 

 

 

 

 

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KelpsCA
New Member

Grandparent childcare shared home

Thanks for your help. Her only other income is social security, and I only want to report $3,000 that I pay her. 
For reporting, I’ve found rules for if the grandparent watches the child in your house or her house, but I haven’t found anything about a shared house. 
Thanks again!

DianeW777
Expert Alumni

Grandparent childcare shared home

It doesn't matter as long as your mother is not your dependent.

 

Payments to Relatives or Dependents (IRS Publication 503)

You can count work related payments you make to relatives who aren't your dependents, even if they live in your home. However, don't count any amounts you pay to:

  1. A person for whom you (or your spouse if filing jointly) can claim as a dependent;

  2. Your child who was under age 19 at the end of the year, even if he or she isn't your dependent;

  3. A person who was your spouse any time during the year; or

  4. The parent of your qualifying person if your qualifying person is your child and under age 13.

 

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