Client has paid girl who is under 16 to babysit her children. She wanted to take the credit and was asking about the girls' taxability. SS # has to be on 2441, does IRS match those numbers like they do 1099's. I told her that girl would be liable for SE taxes even though she is a dependent of her parents. Is there anything else to do with this situation?
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take a look at section 5-18,19 of TTB. That should give you the info you're requesting. -
Household Employee
Client should issue a W-2 NOT a 1099 to this girl and pay all Federal Payroll taxes via Schedule H.I would put a favorite quote in here, but it would get me banned from the board.Comment
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That is what I needed. This is the first year using TTB, having a little trouble navigating. Is there any way of flagging this as a child under 18, or does IRS figure it out because the child has no other income and is listed on their parents' return?Comment
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I don't think there is sufficient information in the original post to determine the correct answer.
First, we don't know where this babysitting service was provided.
Second, we don't know why the babysitting service was needed. Was it necessary to enable the mother to work - or was it merely occasional babysitting for other purposes?
Until these two questions are answered, we have no basis upon which to provide an answer.Comment
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