Need some help from parents!

[Drakkon]

offer $100 a week and if she looks shocked say u thought so too but thats what a buncha geeks on some internet forum told you would be a fair offer 🙂

sounds liek a good person though to take care, paramedics are always good to have around 😀

 

[CPA]

Here's the dilemma:

If you pay her "under the table" then you lose the ability to claim the Child Care Credit.

And if you do, then she has to claim the income.

Being a CPA, ethically, I would have to say that you and her need to report it. But, it's your call.

 

[OutHouse]

my wife charges $6.00 an hour and is under the table.

 

[MomAndSkoorbaby]

Originally posted by: CPA
Here's the dilemma:

If you pay her "under the table" then you lose the ability to claim the Child Care Credit.

And if you do, then she has to claim the income.

Being a CPA, ethically, I would have to say that you and her need to report it. But, it's your call.

I was wondering about that and the law....if we did claim it, would we just offer her more since she too has to claim it?

AND what does claiming the "child care credit" mean exactly?

 

[new2AMD]

Originally posted by: MomAndSkoorbaby

Originally posted by: CPA
Here's the dilemma:

If you pay her "under the table" then you lose the ability to claim the Child Care Credit.

And if you do, then she has to claim the income.

Being a CPA, ethically, I would have to say that you and her need to report it. But, it's your call.

I was wondering about that and the law....if we did claim it, would we just offer her more since she too has to claim it?

AND what does claiming the "child care credit" mean exactly?

I think he is ethically bound to tell you that. I wouldn;t report it if I were you. I wouldn;t want it reported if I was watching your child either.

 

[bunker]

What happens when you claim the child tax credit:

On the forms, you enter the amount you are claiming as well as the child care provider's name address and social security/tax id number.

The IRS will then be expecting her to claim it as income.

 

[EagleKeeper]

Originally posted by: MomAndSkoorbaby

Originally posted by: CPA
Here's the dilemma:

If you pay her "under the table" then you lose the ability to claim the Child Care Credit.

And if you do, then she has to claim the income.

Being a CPA, ethically, I would have to say that you and her need to report it. But, it's your call.

I was wondering about that and the law....if we did claim it, would we just offer her more since she too has to claim it?

AND what does claiming the "child care credit" mean exactly?

The amount you pay for dependent care (up to $5k) can be deducted aginst your income, even if you do not itemize.

In other words, you do not have to pay Federal (and possibly State) income tax on that amount.

Depending on the income level of the sitter, they would be responsbile for income taxes on the amount that you pay for watching the baby.

There are some ways around this, but not to be discussed in an public forum.

 

[puffff]

back in high school, i used to live in a rather rich area, so i'd get paid pretty well for babysitting. it was always under the table. i'd get about $10/hr. that was for watching 4 kids though.

(yeah, i'm a guy and i used to babysit. the family practically begged me to do it, they had gone through tons of sitters before and apparently i was the only one who could keep the four kids, including a 1yr old and 3yr old, under control)

 

[woowoo]

Originally posted by: Citrix
my wife charges $6.00 an hour and is under the table.

I'll take 1/2 hours worth.....
(Sorry, could not resist)

 

[CPA]

Originally posted by: bunker
What happens when you claim the child tax credit:

On the forms, you enter the amount you are claiming as well as the child care provider's name address and social security/tax id number.

The IRS will then be expecting her to claim it as income.

bingo.