I pay a babysitter to watch my kids at home while I work. Can I claim that back on my taxes? What about the sitter - will she have to file a return and declare what I give her? How does it work and which way can I go without either of us getting stung?
2006-10-23 07:54:34 · 7 answers · asked by bindilouwho 1 in Business & Finance ➔ Taxes ➔ United States
Thanks to you all for your input. Some conflicting information but, for the most part, very helpful!
2006-10-24 04:45:25 · update #1
If you are in the U.S. it is tax deductible. Many companies have dependent care expending accounts that allow you to pay for this with pre-tax income. You will have to report the sitters social security number if you do it with a private sitter.
2006-10-23 07:57:08 · answer #1 · answered by BluedogGirl 5 · 0⤊ 1⤋
Basically, if the child can be claimed as your dependent, and the sitter has a social security number, and you are either working or looking for work during the duration of the babysitting~~then, yes, you can claim the child and dependent care credit on your taxes.
Most casual babysitters will not earn enough income from babysitting alone to owe income tax. However, If her net babysitting income is over $400 then she will have to file a return , along any expenses incurred in earning that income on Schedule C. She will also need to use Schedule SE to calculate her self-employment tax.
2006-10-23 09:49:35 · answer #2 · answered by RamsGod 3 · 0⤊ 0⤋
Yes, you can claim what you pay her as child care expenses on your taxes. You'll have to file and pay half of the social security amount on what she makes, and she'll have to claim the income on her taxes. This is the only legal way to do it.
Often people pay at-home babysitters cash, and don't file any taxes on it. This is not legal although frequently done. I'm not recommending that, just mentioning it. If the babysitter doesn't claim it for taxes, the payer doesn't deduct it either. And that work time doesn't count toward the babysitter's social security. Again, it's not legal to do it that way.
2006-10-23 08:14:23 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
You can get a tax credit on form 2441. If the sitter makes less that $ 1,400.00 she can put it under "household income" and will probably not have any tax liability. Otherwise the sitter will have to put it on a Sch CEZ and 1040.
2006-10-24 04:39:35 · answer #4 · answered by acmeraven 7 · 0⤊ 0⤋
if you paid her $600.00 or more she is legally responsible for paying her own taxes that included social security and medicare. You will have to send her a 1099 at the end of year reporting what you paid her. if you dont do that then you cant get any deductions.
2006-10-23 13:54:50 · answer #5 · answered by linluv2001 2 · 0⤊ 0⤋
I don't think so because technically you are paying her under the table. Unless you are pulling taxes from what you are giving her and giving it to the government she is being paid under the table so therefore I don't think you can claim this tax. Also you would have to give her a W-2 for her to claim her income from you.
2006-10-23 08:03:22 · answer #6 · answered by butterflykisses427 5 · 0⤊ 1⤋
If she also performs household chores for you she might be a household employee. You would pay the employment tax on Schedule H.
2006-10-23 12:06:12 · answer #7 · answered by daoco 4 · 0⤊ 0⤋