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Reply to "Tax question - hiring my mom for childcare, and pay her with FSA money?"
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[quote=Anonymous][quote=Anonymous]You need to just gift your mom money. Do not hire her as an employee. She watches your kids for free. You give her x dollars as a vhrismtas present. [/quote] This. The amount of extra money that you'd be required to pay your mom in employment taxes (it really adds up) might just negate the taxes you'd be saving with the FSA - which is only for the first $5,000 anyway. Do the math and then consider just gifting her money if she needs it. [/quote]
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