Announcement

Collapse
No announcement yet.

day care income

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    day care income

    Client had his mom watch their child after school and paid her money. His mom did not care for other child, only her grandchild. If client wants to get child care credit, then grandma will have to report the payment as income. I am confortable to report that income as other income, not on schedule C. What do you think?

    #2
    Originally posted by liberty View Post
    If client wants to get child care credit, then grandma will have to report the payment as income.

    No, grandma needs to report payments for services regardless if client claims a credit or not.



    Originally posted by liberty View Post
    I am confortable to report that income as other income, not on schedule C. What do you think?

    If grandma watches the child in the client's home, grandma might be a "Household Employee". Otherwise, yes, I agree. Only watching your grandchildren is rarely, if ever, a "business" on Schedule C. "Other income" would be correct.

    Comment


      #3
      Originally posted by liberty View Post
      Client had his mom watch their child after school and paid her money. His mom did not care for other child, only her grandchild. If client wants to get child care credit, then grandma will have to report the payment as income. I am confortable to report that income as other income, not on schedule C. What do you think?
      You consider reading the flow chart “Child and Dependent Care Credit Eligibility11-5 in The Tax Book.
      Last edited by TAXNJ; 02-15-2020, 09:03 PM.
      Always cite your source for support to defend your opinion

      Comment

      Working...
      X