I had a babysitter who gave me an incorrect SS#. I am trying to sort this out so I can file the forms to the IRS. She told me that she was going to claim it under self-employment income but now I don't know if that's true b/c the SS# doesn't belong to her and I heard from the family who employed her before me that she was receiving social security and asked them to pay her in cash. I paid by check but now I don't know how to report this.
2007-09-30 11:32:48 · 5 answers · asked by Rachel T 1 in Business & Finance ➔ Taxes ➔ United States
Not sure how you know it's not her SS? If you are concerned because you want to take the child tax credit, take the credit, use the SS provided & keep your documentation in case you are ever questioned.
If you paid her $600 or more you should send a 1099MISC to the IRS, but if you do not the fee for not doing so is minimal, if it's ever detected. You can order the 1099MISC and instructions from the IRS by phone or online.
http://www.irs.gov/formspubs/page/0,,id=10768,00.html
2007-09-30 14:16:06 · answer #1 · answered by Dee 4 · 1⤊ 0⤋
You may want to issue her a 1099-MISC or a W-2 (which ever is correct for her circumstances) using the SS# she gave you. However under most circumstances, dependent care expenses are taken without either having been issued by the payer of the care services. You should make sure that you keep her name, address, phone number and copies of all of the checks you wrote her. Also any evidence that she provided the incorrect SS# and how you discovered that it was not hers. At some point the incorrect SS# will be detected by the IRS and you will need to verify your deduction for these costs.
2007-09-30 12:41:06 · answer #2 · answered by ? 6 · 0⤊ 0⤋
If she babysat in your home, then she'd most likely have been an employee, and you'd have been required to withhold taxes from her pay and pay employer taxes.
If she was babysitting in her home, then she was an independent contractor. It sounds like she is evading taxes on the amount you paid her, and probably gave the wrong number to you on purpose. . How did you find out the ss# she gave you was wrong? I'd go ahead and file showing her name and address, and the ss# she gave you, on the child care credit form. If the IRS has bounced this back to you, I'd respond to them that that's the number she gave you - with her name and address on the form, they should be able to track her down.
2007-09-30 14:18:22 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You issue her a 1099. You don't need her SS# to do this. Any good tax software will walk you through it.
2007-09-30 12:17:54 · answer #4 · answered by Stop Ranting 5 · 0⤊ 0⤋
As a household employee, she is not subject to Social Security withholding unless she earns $1,500 in a year.
2007-09-30 13:45:06 · answer #5 · answered by Anonymous · 0⤊ 1⤋