I want to claim child care expenses that I paid to our neighbor who is 13, but not if it means SHE has to claim the money then, as earnings to her. It was a large chunk, over $1000, bui not worth her having to file taxes at her age. ???
2007-02-13 08:04:33 · 7 answers · asked by cheryl _g 1 in Business & Finance ➔ Taxes ➔ United States
"Kingsgirl"- do you mean that I can claim it as a childcare credit though, the $1000 + that I paid her - BUT she doesn't have to claim it as income then? As long as she was 13 at the time?
2007-02-13 08:11:07 · update #1
The Child and Dependant Care credit is for daycare/child care that allows you /and your spouse to go to work, it is not ment to include babysitting for pleasure purposes.
If you report this, the person that you are paying it going to be responsible for paying self employment taxes including the full portion of Social Security taxes
Publication 503
http://www.irs.gov/publications/p503/ar02.html
2007-02-13 09:32:31 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Kingsgirl is wrong that she would not have to claim it because of her age, and several of the other answers aren't totally right either.
Age doesn't matter - it's income that matters. And yes, she is required to file a tax return for this since it's over the limit of $400 for self-employment income.
For you to claim the expenses, you'll have to put her social security number on your return, and she'll have to report it and pay tax on it. She wouldn't owe income tax since the amount is so small, but would owe 15.3% self-employment tax.
It's not unusual for people to pay babysitters and not claim the expenses and for the babysitter to not claim the income either, but it's not legal to do it that way.
2007-02-13 17:41:16 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Technically she is supposed to claim it, but not paying her is what is referred to as "paying under the table." However, pretty much no one claims income for informal jobs such as babysitting or yard work, so its not really expected of her to do so.
I would advise you not to claim it yourself because you don't want her to claim it. I would look at how much you could potentially get back from claiming it. In the grand scheme of things, $1000 really isn't all that much, so it probably isn't of benefit to you to claim it if you know that she will have to pay taxes on it.
2007-02-13 16:15:00 · answer #3 · answered by c 3 · 0⤊ 0⤋
no there is a cap and how much she has to make to claim usually 2000 but she is 13 and child labor laws start at the age of 14 she doesn't have to claim babysitting money.
2007-02-13 16:08:41 · answer #4 · answered by kingsgirl 3 · 0⤊ 2⤋
Yes, she has to claim income as a minor child.
2007-02-13 16:08:02 · answer #5 · answered by Catherine T 2 · 0⤊ 1⤋
first of all, the child/dependent care credit is for parents that paid these expenses allowing them to work or find work.
if you meet this criteria, you would report up to $3,000 of expenses on Form 2441. you would have to supply the name and SS# of the care provider. the amount is not enough money anyway for her to file taxes. you could receive up to a maximum $600 tax credit.
2007-02-13 17:42:02 · answer #6 · answered by tma 6 · 0⤊ 2⤋
i am pretty sure if you claim it she will have to file taxes as well because of the amount being over $500.00 but most tax places would answer your question over the phone, incase it is different in the state you live in.
2007-02-13 16:10:47 · answer #7 · answered by MOT-XJ 2 · 0⤊ 1⤋