My mother receives SS disability but I paid her for child care, can I use this for child care expenses?

[Critter]

Are you claiming the child that is in day care  as a dependent ?   Or is your mom who is in day care ?  If so are you claiming her as a dependent ?

See the rules here on who is a qualifying person for the credit ...  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i2441.pdf">https://www.irs.gov/pub/irs-pdf/i2441.pdf</a>

[SweetieJean]

Is Mom also receiving SSI (Supplemental Security Income)?
<a rel="nofollow" target="_blank" href="https://www.ssa.gov/pubs/EN-05-10095.pdf">https://www.ssa.gov/pubs/EN-05-10095.pdf</a>

[Hal_Al · Accepted solution]

Yes, you can count the money you paid your parent to claim the child care credit. You will have to provide the IRS your mother's SS#. Your mother may have to report the income, on her tax return.

Your next question might be: will this affect my mom's SS benefits. No. See https://www.fool.com/retirement/general/2016/05/16/can-you-work-while-receiving-social-security-disa...

How you mother treats the income, depends on where she works, your home or hers. If she works in her own home, her income is self employment and she will definitely have to file a tax return and pay self employment  (social security & medicare - FICA) tax, if not actual income tax. If she works in your home, her income is household wages, and not subject to FICA, because she is your parent*. She will not have to file a tax return if the amount is less than $6350.

If your mother is your tax dependent, you are not allowed to claim the child care credit with what you paid her.

*If all of that wasn't complicated enough, your mother is subject to FICA if  both of the following apply: (a) your child lives with you and is either under age 18 or has a physical or mental condition that requires the personal care of an adult for at least four continuous weeks in a calendar quarter, and (b) you are divorced and have not remarried, or you are a widow or widower, or you are married to and living with a person whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in a calendar quarter.

[Critter]

Good catch ... somehow I read "paid for her" child care.  LOL

[SweetieJean]

The care provider can't be your spouse, the parent of your qualifying individual, your child who is under the age of 19, or a dependent for whom you or your spouse may claim an exemption on your return.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc602">https://www.irs.gov/taxtopics/tc602</a>
So, if Mom CAN be your dependent, it doesn't matter whether you claim her as a dependent or not.  You cannot take the Child Care Credit.

[ccredding365]

Im not seeking to use my mother as a dependent... I question if I can get credit for the money I paid her to watch my kids... Also stated she is on SS disability and child care is no more than $600 for the year.

[Critter]

So for a credit of no more than $180 you will force your mom to not only file a return but also pay SE taxes of $85 ... seems like a big waste of time, effort & money for little reward.  Consider the money a gift and carry on.

[ccredding365]

Thanks Critter#2....

[SimplyMe1]

So what if she doesn’t work. Do she have to file just so that money I paid her gets reported?

[Cynthiad66]

Yes.  The parents will be claiming the Dependent care credit  the mother has to report the income.

She can  report it as self employment, if she wants to earn social security benefit. Alternatively, you could be classified as a household employee (since you only worked in their home). There is normally a $1900 limit for a household employee not to be subject to FICA (social security & medicare) tax. But that limit is not applicable to the taxpayer's parent.