I paid over $6,000 in daycare to a friend for 2014. She is not willing to give me her social to use on my tax return because she does not want to file this with IRS. How can I still get credit? I will lose around $1,000 without it.
By federal law, daycare providers are required to provide their clients with either their SSN or EIN (Employer Identification Number) no later than Feb 2, 2014 for this year. Failure to do so can and will most likely, result in a audit of that provider with some fairly hefty fines.
While I can understand the reluctance to provide one's personal SSN, the daycare provider does have an extremely easy alternative. They can obtain an EIN on line, in about 10 minutes at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-... So you might try the friendly, informative approach as you provide this information to your provider.
If they still refuse, then you will need to send your provider a W-10 (Request for Taxpayer Information and Identification Number). Get the form at https://www.irs.gov/pub/irs-pdf/fw10.pdf, fill out what you can and send it via certified mail after making 2 copies for yourself. If the provider does not provide the info within 10 business days, then you can still file your tax return without that information. However, you won't be able to e-file it. You'll have to mail it in. When you mail it, include a copy of the W-9 you sent to the provider, along with a copy of the proof that you sent it to them via certified mail.
You'll still qualify to claim the expense and will get your refund. But it may take a bit longer is all.
If you don't want to do this, because the friendship means more to you, I can understand that. You just can't claim the childcare expenses then.
The only thing I can see though, is that if you did not use this prior to paying the childcare, and realize you need the provider's SSN or EIN, yet they refuse to provide it, then in that case (only in that case) would you use the W-9 to formally *request* the information. This shows the IRS that you did request it, and supports a claim that the provider refused to provide it. (just a bunch of legality mumbo-jumbo in my opinion, though)
Yes, you are ILL informed. As a childcare provider for over 11 years and someone who has a tax attorney who specializes in this you are completely WRONG.
A provider (home) is NOT REQUIRED to give you the W10. (she/he didn't even know the right form but says that's nit picking.lol) YOU as a client must bring a BLANK W10 to be filled out by your provider. (licensed or not does not matter) Once you (the client) bring the BLANK form to be filled out THEN they are required to give you the information. Not before. And they do NOT have to give you ANYTHING unless you REQUEST the info by bringing the BLANK form. If they don't fill it out it is a $50 fine to the provider. If you left owing your provider, most would just pay the $50 than give you the form. However, most good home providers probably give you the form without requesting it providing you are in good standing. BUT there is NO LAW OR REQUIREMENT that they MUST give you anything with you bringing the form. There is also no deadline for them to fill it out by. If you are going to "volunteer" answers you should be up on the information you are providing to people who are trusting you to know.
As for being "ill-informed", when you have volunteered here for 6 years and answered 10,000 questions, you might earn the right to call on of the other volunteers "ill-informed." Until then, thank you for your tax opinion but keep the personal comments to yourself.
You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of information just listed. Care providers can be penalized if they do not provide this information to you or if they provide incorrect information.
If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). Enter “See Attached Statement” in the columns calling for the information you do not have. Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Be sure to write your name and social security number on this statement. The statement will show that you used due diligence in trying to furnish the necessary information.
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