Do I Have To Give Child's Father My Social Security Number ...?

Question

I have been taking care of a friend's little boy while she works for several months. Court paperwork dictates that she pay 48% and the father pay 52% of the childcare expenses. She has been paying me her portion plus part of the father's portion from the get go, as he has not ever paid a cent toward his childcare. I finally started giving him bills, and he has asked for my tax identification number, which I now know is my social security number. I don't feel safe giving him my SSN, as he is not a trustworthy person, and I believe does things that are possibly illegal. Do I have to give him my SSN in order for him to claim childcare expenses on his taxes? Can he just give them my name and address? I already know I have to and will claim the income from this on my taxes. If I don't give him my SSN, does that mean he doesn't have to pay me for his child's childcare that I have provided?

Thanks ~ I have no intention of giving him my SSN!

It's not a business, I'm doing this for a friend. What I recieve monetarily is FAR below minimum wage, and I provide food for the child as well.

You have all been a big help ~ Thanks so much! I will be getting an EIN (spoke to an IRS guy about the situation). Just for the record, I have no problem with giving my SSN to the mother (my friend), but I will not give it to the father (who has NOT paid anything!)

O.K., I'm writing this after I've gotten an EIN nuber, which I'll give to the mother. However, I've learned that the father does not qualify to claim these childcare expenses on his taxes for two reasons: 1. The childcare does not take place so he can work (he works at night) and 2. He is not the child's custodial parent (the parent with whom the child lived with the greater part of the year). Therefore, I should not have to give him my tax i.d. number in order to recieve payment from him.

Answer 1

What the father is probably planning on doing (at least I hope this is what he's planning on doing, with needing your social security) is claiming on his tax return the 52% of the child care expenses that he is paying for. In order to get the child/dependent care credit, he needs to put down the child care provider's information (in this case, you), which includes either and EIN # or social security #. I prepare taxes for a living, and right on form 2441 (child/dependent care credit) it asks for EIN/Social Security number. If you don't feel comfortable with giving him your social security number you might want to fill out an SS-4 on-line with the IRS to get a EIN #. Then you can give him that so that he can claim the child care credit. But, with him claiming the child care credit, you will have to report the income you are being paid by her and him on your tax return, on a Schedule C, along with expenses you are incurring for taking care of the child. If you have a net profit from the child care and it is more than $400 you will have to pay Self-Employment (SE) tax on that profit, which is 15.3% of 92.35% of net profit.

Answer 2

The father cannot take the dependent care credit if he is not the custodial parent. However, as a business, you need an EIN. There is no harm to you if you give it to him if he is your client. Give both parents the EIN, do not give the EIN to the father and your SSN to the mother. Use the EIN on your Schedule C when you report the income.

Prepare a year-end statement for each parent, showing

Date of statement:
Your business name
Address
EIN

Name of child:
Address of child:
Amount of child care expenses:

Name of parent:
Address of parent:
Amount paid by parent:

That way you have documented all the relevant facts. The custodial parent may be able to take the dependent care credit for expenses she paid to you. You should not concern yourself if she got the money from the father or not.

The statement to the noncustodial parent protects you in case he tries to claim a dependent care expense on a child that does not live with him. He will not be able to use your statement to support his claim for the credit.

Answer 3

If they are paying you, you MUST provide your SSN upon request! You do NOT have an option on this, by the way. You can be penalized for failing to provide it where there is a legitimate requirement to do so. Since you are being paid, there IS a requirement to do so.

They will likely be claiming some of the child care expenses on their taxes and you must claim this as income. They must provide YOUR SSN to get the credit. YOU must provide them with your SSN.

If you're not comfortable with giving him your SSN you can get an EIN from the IRS. Give him that instead. But you must provide a TIN upon request.

Answer 4

You can get a EIN (Employer Identification Number) that you can give him instead of your SSN as a TIN. You can get an EIN online. (See link below). It sounds like you are doing this as a business so it makes sense to have an EIN in any case. It doesn't matter that you don't have employees.

Answer 5

Your tax ID number is required on the Child Care Credit form.

Answer 6

NO!!!!!!! He has to pay the child care whether you give it to him or not. And DO NOT GIVE HIM YOU SS#. If he refuses to pay you you could take him to small claims court or stop watching the child. I wouldn't trust this guy either. I've done day care for many years and have never asked to give mine and I never will! Good Luck!

Answer 7

If I were you I would call the IRS, I believe they have a 800-number on the computer, and find out from them. What ever you do don't give him your social security number.

Answer 8

Tax ID number for his tax purposed would be your business tax id number. Don't give him your ssn.