Reporting wages to a parent who is a household employee

[cweb58]

How do a report wages paid to my mother who watched our kids during the year? We are not claiming the dependent care credit since I was not working so I am not sure how to enter her Social Sec. number and the amount paid. She is filing her return so she can pay income taxes.

Thank you. 

[PattiF]

You do not need to report the wages that you paid to your mother for watching your kids during the year. If you were claiming the Dependent Care Credit, you would issue a form to report the amount that you spent.

Your mother can report this as Other Miscellaneous Income, or as Self-employment Income. If she files as self-employed she will pay the self-employment tax for Social Security and Medicare. 

[cweb58]

Hi, thank you for your response. It is says that her GA tax return is still pending? Do you know what may be the reason? Do we need to do anything extra? 

Thanks

[AmyC]

Several states are slow processing the returns. You have 5 days from deadline to correct rejection or mail with rejection slip. No need to worry.