how would i claim an independant baby sitter on my taxes for this year if she doesnt pay taxes on my payments?

Question

i pay her cash and have no receipts of payment

Answer 1

I think you will need her SSN to claim the payments. Then if she doesn't report them, the IRS can (maybe?) catch her

Answer 2

Let's see, everybody who uses this sitter claims the child care credit and nobody has the SSN or receipts.

Since you will be missing the SSN, be absolutely certain you've got the name and address right as the 2441 instructions state:

If the provider does not give you the information, complete the entries you can on line 1. For example, enter the provider's name and address. Enter “See Page 2” in the columns for which you do not have the information. Then, on the bottom of page 2, explain that the provider did not give you the information you requested."

so you'll have to file a paper return.

Sitter claims she didn't work, but can't explain how she supports herself.

Yes the parents are risking having their credit denied, but the sitter is risking charges of income tax evasion.

Answer 3

You need her SSN to claim the Child and Dependent Care Credit. Whether or not she pays her taxes on that money is her problem, not yours.

You should NEVER pay for anthing that has tax consequences in cash if you do not get a receipt in return! If she won't give you a receipt, pay her by check so you have proof of the payment.

Answer 4

If you don't have receipts, it's going to be extremely difficult. Since you have list her name and social security number on your tax forms. The IRS is then going to cross reference to make sure she claimed the payments as income. If she doesn't, and then says you never payed her, they're going to come looking for your receipts.

For 2008, make sure she knows that you plan on claiming the payments and will need receipts.

Answer 5

Did you take the child to her home or daycare center? Then she is in business and must provide you with her SSN or tax ID number (an EIN) as well as her address.

If she came to your home, unless she was sent by a babysitting service, she is your employee and you have to fill out a Schedule H and pay SS and Medicare taxes for her when you file you tax return.

If you want to take the dependent care credit, you must have her SSN or EIN.

Answer 6

Just claim the deduction in the appropriate place on your return. If perchance you get audited, you're going to have to come up with some receipts, so it might be a good idea to have her give you some now.

Answer 7

You can still claim the payments from your own records, but would need to put down her name and address, and make an attempt to get her social security number. If she won't give it to you, then you'd note that on your return.

Answer 8

Your hosed. Without reciepts if you try to claim child care deductions and have your taxes professionally done most preparers will not do it. If in the future you get audited, without reciepts you will have no proof, and will owe that money back with penalties.