Tweet
Does any of you have your husband help you in your daycare? How about your children? I have read that we need to keep good records on the jobs & hours etc, but I need to know more details on claiming it on taxes. Thank you!!
-
-
hiring own family members
If you don't pay your husband or children to work for you there are no tax consequences. If you do pay them money then there are. If you pay your husband you must withhold Social Security/Medicare taxes and he must report the money as income. Your state may or may not require you to purchase workers compensation insurance.
If you pay your child who is under age 18 there are no Social Security/Medicare taxes, and the child can earn up to $5,950 without having to pay any taxes. If the child is age 18 or older then you must withhold Social Security/Medicare taxes and the child must report it as income.
You should also check with your state to see if you must purchase workers' compensation insurance.
Comment