Child Care won't give SSN

[casey746]

I have always filed my taxes with Turbo Tax. My child care provider is an individual who refuses to give me a SSN in order to file my taxes. In previous years there was an option to list this. I can see it exists on the form, however, you no longer can select it. Is this going to be corrected or can we no longer select this?

[xmasbaby0]

You should have had a clear meeting of the minds before you started paying this babysitter and should have gotten the SSN or Tax ID at the beginning.    Did you just spring the news that you are entering her earnings on your tax return---and she had not planned for it for her own taxes?   

That being said....you can enter the amount that you paid for childcare and the sitter will be responsible for reporting that income on her own tax return.  She will pay self-employment tax for Social Security and Medicare, and perhaps ordinary income tax.

Or....did the sitter come to YOUR home?   If the sitter came to your home, she was a household employee if you paid her more than $2600 in 2023 and you were supposed to withhold tax and issue a W-2 to her.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/considered-household-employee/L...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/pay-taxes-pay-household-emp...

If the child care was provided in the babysitter's home (or somewhere other than your own home)

When a childcare provider will not give you a SSN or Tax ID

If they still refuse to provide an EIN or SSN, send your provider a W-10 (Request for Taxpayer Information and Identification Number).  You can get a copy of the W-10 by clicking here: W-10 Form & Instructions  Complete as much of the form as you can and send it via certified mail (after making copies for yourself).

If the provider does not respond within 10 business days, you can still file your return.  However, you won't be able to e-file.  Print and mail in your return, along with an explanation and a copy of the W-10 you sent your provider.

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

[xmasbaby0]

Some additional information:

CHILD AND DEPENDENT CARE CREDIT

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names? 

 The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

 If your child was born in 2023 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

[LeticiaF1]

In addition to what xmasbaby0 mentioned, if your provider refuses to give you their SSN, to enter the childcare expense in TurboTax you will need to:

• Go to the Tax Home page
• Select Deductions & Credits
• Under Your tax breaks, select Dependent Care Credit
• Under dependent information click on add to enter the dependents that received care and the amounts paid for each
• The next page is the provider information, click on add provider information
• Choose Other for the taxpayer identification option
• Select the type of provider as business or individual
• Then click on Provider refused to provide the Tax ID number

See the image below as an additional reference:

@casey746