My wife and I both work and we recently had a little girl. Until recently, we have had the luck of family helping watch our little one. This past month situations have changed and we tried a local daycare, but was less than impressed with the quality of care provided. We have been lucky that our friendsco-workers have been able to help out a few days a week. Okay here’s the question. We have been giving $25 a day when they have been watching our little one. It’s what we were charged per day at the daycare. I read how we can get a little credit, I know it’s not much but every bit helps. How do we claim for our taxes? I mean it’s $ 50 a week, but most of the time it’s someone different each day. We’ve paid out about $ 8 between 5 people and it’s been great being able to trust them. Is it not even worth claiming? I’ve paid in cash and check.. do you have to turn in receiptscancelled checks? They are providing care in their home? Do I have to hold taxes on them.. just curious.. any help would be appreciated.
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✅ Answers
In order to take the credit you have to provide the IRS with the SSN and address of every provider and they will be checked to be sure they claimed it. For the whopping 20% credit you might receive depending on your income I would not insult my Friends and coworkers who are willing to provide quality care. While true everyone is suppose to claim all income this is diminutive as the IRS defines it, meaning it did not change their lifestyle so they will not be in trouble for not claiming the 1 or so you paid them.
If you claim it, you must provide the SSN of the person you are paying it to. This means they will have to claim the income on their return. What it means to yoru taxes depends on your situation.
No. area of the fee selection argument became no remember if we could desire to constantly de-fund deliberate Parenthood because of the fact they grant abortion centers, no longer because of the fact our tax money are paying for abortions. PP nonetheless rates the guy for the abortion, yet at a plenty decrease fee than the fee could be someplace else. the government is subsidizing for area of the abortion fee which technically capacity that tax payers are certainly helping to fund abortions. this could nicely be a loophole that liberal politicians use to get around the Hyde modification. Liberals are going to hate my answer…….yet this is how this is.
if you plan to claim the credit for child care, you will need the names, addresses, and SSN’s of all those you paid which will be reported on form #2441
these people are then required to report this income on their tax return as well
No. area of the funds argument grew to become into no be counted if we could continually de-fund deliberate Parenthood because of the fact they provide abortion amenities, no longer because of the fact our tax money are buying abortions. PP nevertheless rates the guy for the abortion, yet at a plenty decrease fee than the fee could be someplace else. the government is subsidizing for area of the abortion fee which technically skill that tax payers are certainly helping to fund abortions. that’s a loophole that liberal politicians use to get around the Hyde modification. Liberals are going to hate my answer…….yet it fairly is the way it is.