Legal question about employing a family member as childcare provider
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Anonymous
| My mom is going to be moving in with us to provide 1/2 day childcare for my kids. As she has no other source of income, we'll be supporting her and paying her something so she'll have spending money. Do I have to withhold taxes or anything for an arrangement like this? |
Anonymous
| I'm no employment law expert, but you can gift her $12K a year tax free. Do you think it will be more than that? |
Anonymous
| PP, if that's the case, which I am not sure of, then DAMN, I could have saved myself a shit ton of hassle. I paid my family member on the books, taxes, healthcare, the works, etc. She was live-in as well. |
Anonymous
$14,000, now, I believe. |
Anonymous
| Google the IRS handbook for household employers. You are right, there are special rules for family members. I'd be more helpful but I'm on my phone! |
Anonymous
| Much better to gift! Not do all that paperweork! |
Anonymous
| If we pay a family member for childcare, are we able to claim the childcare tax credit of $3000 per child? |
Anonymous
|
Again not an attorney or CPA but I don't think you can claim any tax benefit if paying a family member. Pp who suggested just gifting money, I believe that you can gift the person 14k and your spouse can gift them 14k (total pf $28k) but you need to check that out. For sure you can also pay medical expenses and tuition on top of that as long as they are paid directly to the institution billing for it (ie you can't reimburse the family member. You have to directly pay the bill).
http://www.forbes.com/sites/deborahljacobs/2011/08/22/6-ways-to-give-family-and-friends-financial-aid/ |