My retired grandfather babysits our son...can we file this on our taxes without my grandfather having to claim it as income?
2007-12-27 13:39:42 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I don't want him to have to pay taxes on the income, if there's no way around that, I just won't file it.
2007-12-27 13:54:11 · update #1
If you claim the child care tax credit, then you'll have to report who you pay it to, and he'll have to report it on his taxes. Legally this is the way you have to do it anyway - it's not a legal option for neither of you to just report it. I certainly won't say that it's not often done that way though, it's just not legal.
2007-12-27 14:21:05 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you file it he has to claim it. They will require his ss# to do so. But if it is under a certain amount and this is his only income then he will not have to pay taxes on it. Call the IRS and find out. Just be prepared to get transferred to 10 different people.
2007-12-27 21:53:07 · answer #2 · answered by amanda 4 · 0⤊ 0⤋
You pay it and claim it as a deduction and you don't want the grandfather to declare the income? Better check with the IRS, informally of course. They have the answer for you.
2007-12-27 21:50:08 · answer #3 · answered by googie 7 · 0⤊ 0⤋
The only way to claim the credit for child care expenses is to report the tax id number on the 2441 form. You must also both be employed. If you do not want to use his social, you won't be able to get the credit.
Hope this helps
2007-12-27 21:47:14 · answer #4 · answered by RANDALL M 3 · 0⤊ 0⤋