My mom lives with us but is not our dependent.
1) Can she be considered as a household employee since she babysit in my house?
2) I'd like to claim this $4000 expense paid to her and get reimbursed from my dependent flexible spending account (FSA). I know I don't need to withhold FICA tax, but do I have to issue w-2? Would there be a penalty of not issue W-2 although no FICA tax needs to be withheld.
3) When I report this expense in my tax return, in addition to report this expense on form 2441 (child and dependent care credit), do I have to fill out houshold employee form or Scheule H? I assume the form 2441 is the only one that I need to put her name in?
Thanks!
You'll need to sign in or create an account to connect with an expert.
Can anyone help answer this question? Thanks!
You can also contact Support today if you do not get an answer here.
Thank you! My situation is more special as I hired my parent to babysit. I assume the payment threshold would not apply when it comes to fill schedule H?
From the IRS website
https://www.irs.gov/taxtopics/tc756
It says:
About W-2: If you must withhold and pay social security and Medicare taxes, or if you withhold federal income tax, you'll need to complete w2 for each employee.
About Schedule H: If you pay wages subject to FICA tax, FUTA tax, or if you withhold federal income tax from your employee's wages, you'll need to file a Scheudle H.
Since parents are exempt from FICA tax regardless of the $ amount, then no w-2 or schedule H needs to be filed.
Am I right?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Davlin20
New Member
pearl12970
Level 4
Roberto_025
New Member
weaslebub
Level 2
BobBridges
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.