The original post forgotten
You are entitled to your opinion and I'm entitled to mine. I never said I would go around recommending such actions, I said I thought it was an interesting theory. However ... if someone told me that is what they were doing I would not sit there and tell them that they cannot do that. I'm not telling Grandma that she has to charge for babysitting and I sure am not going to tell parents that they can't give Grandma gifts.
I would however tell them (in Pennsylvania) that they need to be aware that for some of the services available to the elderly that they have to include the $$ of gifts and that might cause them to lose those services.
In the middle of all this, the original post has been forgotten.
Possi asked for opinions on whether the grandparents had to file a Schedule C or if they could claim it as other income.
I don't even remember if anyone actually answered the question without reading the entire posts again .....
and as Sandy just said ... plain and simple ... if the parents want to claim the deduction then the grandparents will be claiming the income. Tax prep 101
And I don't think that *other income* qualifies the Form 2441 deduction. where Sch C income would qualify the use of the child care credit. (This is just a guess)
You are entitled to your opinion and I'm entitled to mine. I never said I would go around recommending such actions, I said I thought it was an interesting theory. However ... if someone told me that is what they were doing I would not sit there and tell them that they cannot do that. I'm not telling Grandma that she has to charge for babysitting and I sure am not going to tell parents that they can't give Grandma gifts.
I would however tell them (in Pennsylvania) that they need to be aware that for some of the services available to the elderly that they have to include the $$ of gifts and that might cause them to lose those services.
In the middle of all this, the original post has been forgotten.
Possi asked for opinions on whether the grandparents had to file a Schedule C or if they could claim it as other income.
I don't even remember if anyone actually answered the question without reading the entire posts again .....
and as Sandy just said ... plain and simple ... if the parents want to claim the deduction then the grandparents will be claiming the income. Tax prep 101
And I don't think that *other income* qualifies the Form 2441 deduction. where Sch C income would qualify the use of the child care credit. (This is just a guess)
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