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amother




Lilac
 

Post  Thu, Mar 28 2019, 9:54 pm
Ok, I just googled.
If you have 2 or more children in childcare, you can claim the additional $1000 (6000 max childcare deduction-5000 FSA) as a childcare expense.
If your tax rate is 20% this would amount to a tax savings of $200.

Is it worth aggravating the provider over $200?
Ask her if she’ll deduct it from your tuition bill and everyone’s happy, no?
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amother




Fuchsia
 

Post  Thu, Mar 28 2019, 10:11 pm
amother wrote:
Your post is foolish. Obviously, I write that as a CYA.


Whose A?
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ra_mom




 
 
 
 

Post  Thu, Mar 28 2019, 11:50 pm
amother wrote:
Your post is foolish. Obviously, I write that as a CYA.

I googled. CYA stands for cover your a$$? Can't Believe It
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amother




Fuchsia
 

Post  Fri, Mar 29 2019, 12:00 am
ra_mom wrote:
I googled. CYA stands for cover your a$$? Can't Believe It


Its a common expression used by lawyers.
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groovy1224




 
 
 
 

Post  Fri, Mar 29 2019, 5:50 am
amother wrote:
Do you work at the IRS?.

An employer filing a W2 is not the same as individual taxpayer including the SSN of the childcare provider on her 1040. Totally different processing.

And - tax returns are confidential. Its unlikely IRS will contact Mrs. Y and tell her that Mrs. X claimed her a deduction.


I don't work at the IRS but I don't think the fact that returns are confidential has anything to do with it. The IRS asks you for the provider's social exactly for this reason- so that if the provider doesn't report this income, it will be flagged. I don't know how specific they get, but they absolutely are checking for that kind of thing.

OP, I don't understand why people are telling you that you did something wrong. You claimed a deduction you are entitled to, and you tried to reach her to discuss but she dodged your calls. Now that you filed, all of a sudden she's available to chat?

The fact that she's under review is scary I'm sure, but if she's been accepting the income under the table all these years I'm not sure why she thinks that's the parents' problem. If you want to work it out, maybe say you'll amend the return and take it out, but she has to give you a discount in the amount of the credit that you are giving up.
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groovy1224




 
 
 
 

Post  Fri, Mar 29 2019, 5:53 am
amother wrote:
Your post is foolish. Obviously, I write that as a CYA.


Lol are you the same poster that wrote 'not legal advice' after every sentence in a thread a while back?

You said one sentence, which in no way could be construed as legal advice, so why would anyone take it as such?
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baby12x




 
 
 
 

Post  Fri, Mar 29 2019, 6:32 am
You must tell her! That way she can file her own taxes appropriately.
Not telling her can be setting her up for trouble. I really think you should tell her especially if she thinks that you didn't file or claim the deduction.
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amother




Maroon
 

Post  Fri, Mar 29 2019, 8:47 am
baby12x wrote:
You must tell her! That way she can file her own taxes appropriately.
Not telling her can be setting her up for trouble. I really think you should tell her especially if she thinks that you didn't file or claim the deduction.


She filed them a while back. Way before we even thought about filing. Then she came under review, and in a panic, asked us to not report the expenses. I explained at the time why I wasn't comfortable not reporting any (want to at least line up with the FSA funds claimed).
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amother




Maroon
 

Post  Fri, Mar 29 2019, 8:50 am
amother wrote:
Ok, I just googled.
If you have 2 or more children in childcare, you can claim the additional $1000 (6000 max childcare deduction-5000 FSA) as a childcare expense.
If your tax rate is 20% this would amount to a tax savings of $200.

Is it worth aggravating the provider over $200?
Ask her if she’ll deduct it from your tuition bill and everyone’s happy, no?


That's exactly what she was requesting - and I would have been willing to work with her, except not to NOT report the FSA funds that she signed off on. We never finished the conversation with any sort of agreement, and then she "ghosted" me...
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amother




Fuchsia
 

Post  Fri, Mar 29 2019, 12:54 pm
groovy1224 wrote:
I don't work at the IRS but I don't think the fact that returns are confidential has anything to do with it. The IRS asks you for the provider's social exactly for this reason- so that if the provider doesn't report this income, it will be flagged. I don't know how specific they get, but they absolutely are checking for that kind of thing.

OP, I don't understand why people are telling you that you did something wrong. You claimed a deduction you are entitled to, and you tried to reach her to discuss but she dodged your calls. Now that you filed, all of a sudden she's available to chat?

The fact that she's under review is scary I'm sure, but if she's been accepting the income under the table all these years I'm not sure why she thinks that's the parents' problem. If you want to work it out, maybe say you'll amend the return and take it out, but she has to give you a discount in the amount of the credit that you are giving up.


What I said was - comparing it to the IRS automatically flagging a mismatch between W2 reporting and 1040 tax return filing - is false.

Yes of course they ask for SSN so that they can have a record of who income was paid to. That doesn't mean that they are going to send a letter to the childcare provider and identify to her who claimed, on their 1040 that they paid her for childcare. That seemed to be what OP was fussed about - will the IRS tell her that it was them.
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