Question

Will putting the persons info that I paid to watch my kid effect their taxes?

Forum|Forum|4 years ago
March 22, 2022
2 replies
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TurboTax Free Edition Online

Employee

Yes.

You are required to provide identifying information of the individual or entity that provided you child care expenses. Otherwise, you will not receive the child care tax credit. The person or entity you identify as having been paid for those services, is expected to report the income received from you on their own tax return.

M

miker-davis3Author

Thank you for the quick reply. How does it work for them if they already filed their taxes?

Carl11_2

Employee

How does it work for them if they already filed their taxes?

Hopefully, the already included the income. Otherwise, they may (or may not) get a letter from the IRS anywhere from 24-36 months after their return is processed.

One thing that can also matter, is where the childcare was provided. If provided in your home, then depending on conditions the IRS may consider the provider to be a house hold employee to whom you are required to issue a W-2. Otherwise, proof that you actually paid the individual would be needed if you were ever audited on it.

It also matters if the provider was a related family member that you paid. For example, if you paid your mother to watch her grand children.

When it comes to the federal taxes on this child care stuff, it can get rather complicated pretty fast.

P

PattiF

Yes, they will have to declare that income on their taxes. If you are going to enter their Social Security number and the amount in your tax return for the Dependent Care Credit, the IRS will check to make sure that income is reported.

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