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Babysitting and Taxes--what should I do?



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amother


 

Post Sun, Mar 01 2015, 11:38 am
An acquaintance started a playgroup last year with the a full-fledged intention of becoming legal, but b/c of timing, it didn't happen in time for taxes last year, and her husband who runs the financial aspects of the playgroup wouldn't allow us to claim even a small amount of the cost saying that consider that we gave you a discount for not being legal. Last summer I had a choice of sending him to a legal daycamp or this playgroup and I was frank with her saying, I need to know if the playgroup will be legal so I can claim it for taxes or I should send him to the daycamp so I can claim some childcare for taxes--and she assured me that she was working with an accountant to make everything legal for September so I kept him in the playgroup--but then a complication came up with her location and it took her a long time to find a suitable replacement location, and it affected her ability to accept new kids, so it became a lot smaller than last year. Now I'm trying to file my taxes, and I don't know how to ask if she ever became legal, can we claim the childcare on our taxes? We're friends now, and I don't want to rock the boat with this, but it would affect our taxes significantly one way or the other--what should I do?
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LittleDucky




 
 
    
 

Post Sun, Mar 01 2015, 11:45 am
If it's important to you- ask. But again, if it was hypothetically important to me, I probably would have asked before. And it is important to me- not only taxes wise but safety-wise. And maybe don't send next summer/fall so for 2015 you can get something off your taxes. You are spending it anyway, why pay taxes on top of it?.
However, her husbands response was inappropriate. A discount? On what? You can't get money off your taxes because they weren't legal! You didn't get any $$ off-did you? Just sounds off to me.
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amother


 

Post Sun, Mar 01 2015, 12:09 pm
Sorry for being anon. You can do your due diligence to get the tax id and document it and then claim the credit with name and address but not tax id on your tax return. Providing this for federal is separate from the requirements to start a legal day care in whatever city or county you are in.

Basically they are just saying to you, hey we have no intention of paying our taxes. You can say hey we want our tax credit and you can take it and the IRS will probably send them a collection notice.
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kb




 
 
    
 

Post Sun, Mar 01 2015, 12:23 pm
You don't have to have a licensed and legal company to declare taxes. I believe that even if you rob a bank you legally have to declare that income!

The question is if she's declaring her income or not, which had nothing to do with her licensure. Even if she doesn't report it there's still a way for you to claim the expense (though that would probably get her in trouble in the process)
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