Parent Not Claiming?

[newtodaycare22]

I already filed taxes and got my refund.

Today, 1 of my dc parents tells me she is not claiming me because she is already over her limit w/previous child care costs. She told me 'in case I wanted to adjust my taxes"

What does that mean?? I still made that money and claimed it...do I have to change anything?

[heyhun77]

It doesn't make any difference if the parents claim the money they pay you. All that matters is that you claim 100% of the money you were paid. That's the only way to be above-board and doing what you should be doing as a self-employed person.

[jen]

Nope, you don't have to do anything. She just let you know in the event that you didn't want to claim the money she paid you...probably not a good idea.

[TomCopeland]

Parent not claiming

The two responses are correct. You must report money you received from parents as income, regardless of whether or not the parent claimed it towards their child care tax credit.

[legomom922]

Why is it that is is generally accepted that if somone "babysits" a child , they do not have to claim the income? I have a friend who's daughter goes to a friend 2 days a week and she just babysits her, and doesnt claim the income, however if you label yourself a DCP, then you are expected to claim the income. Just wondering where the boundary line changes...My brother pays my mom 3-4 days a week to watch his daughter, my mom dont claim it...

[heyhun77]

In reality they are supposed to claim it because it's income. I'm sure there are some exceptions to that but if they are providing a service for a price and accepting money for that service then it's income and should be claimed as such and taxed as such. By labeling yourself as a DCP you are being a professional.

[legomom922]

Wouldnt you agree though that the IRS would never crack down on babysitters? It seems they could care less..There are no written rules or regulations that I am aware of anyway....I'm thinking how much easier it would be to just rename myself a babysitter for the whole 11 hrs I work and save myself a whole lot of grief, taxes and time & trouble. LOL

[dEHmom]

if the IRS never knew about your babysitting/child care providing, or had no reason to consider you worthwhile then you would never have to claim it.

BUT you should claim it, it is more beneficial for you to claim the income then to not claim it.

Babysitting at 15 yo you are still supposed to claim it, even though you don't pay any taxes on it.


If you are not claiming it though, and they find out that you should've been paying so much in taxes because you've made so much in income, you are now in trouble.

[TSDaycare]

Wouldnt you agree though that the IRS would never crack down on babysitters? It seems they could care less..There are no written rules or regulations that I am aware of anyway....I'm thinking how much easier it would be to just rename myself a babysitter for the whole 11 hrs I work and save myself a whole lot of grief, taxes and time & trouble. LOL

You are right....It's all in the way you label yourself, whether you have a legitimate business and if you are following the rules or not. Yes you are supposed to report ALL income, but there are many providers out there who do provide services at a lower cost IF the parents do not claim that money on their taxes! For me, I prefer not to get into that kind of mess, it's too risky. There are also many small business' who give you a discount if you pay cash, have you ever thought about why? Because they don't have to claim that cash-it's not traceable! But being and honest business owner is the easiest way to go in my opinion!! It will keep you out of hot water! And by the way, I also watch family members, and have to pay tax on that income
But that is life and the business I choose!

[TomCopeland]

Babysitting

Babysitters are required to report their income. However, most babysitters will not owe any taxes on their income because they make less than the standard deduction.

[sjhon]

You must attach the cover page the pages include the required information above, and the signature page with the custodial parent’s signature and date of agreement.

[sharlan]

The parents don't have to claim anything if they don't want to.