MyCoupons.com Shopping Boards - View Single Post - Need help with babysitting at home and child care tax credit, please

itscc2u · #5 (**permalink**) 08-23-2007, 06:35 PM

She cant claim for the child care tax credit unless you claim it as income. You dont need a tax ID you can use you SS# for the schedule C which is self-employment there is no way around not claiming this money because Sister will need your name and SS # in order to claim the credit on her taxes its been a law for about 10-15 yrs now as many people were skirting it claiming daycare costs when they didnt have them or claiming them and the daycare provider didnt claim the income. Its one of the first things we learned in Tax Class and I used to teach in Tax Class. You will also have to file and pay Self Employment taxes each quarter which will credit towards your Social Security benefits or end up with a surprise at tax time owing money or getting a small reund with penalties for not paying SE taxes.You cant have it both ways her claim and you not its both claim it or dont do daycare for her at all.

I dont make much selling on Ebay, but I claim every little dollar I make, I also claim all my survery money and reward programs money every year I am not going to get caught by the IRS.