Tax Lawyer or CPA Recommendation

[Anonymous]

I'm going back to work part time in September, and have been actively looking for a nanny/care option for my 8 month old son. At the same time, my Mom (who lives locally) has also been looking for part time work. A couple weeks ago we put our heads together, and decided to explore the options of my mother watching my son three days per week. We would pay her for her time, and she'd like to report any income she makes to Social Security. We've been researching all the necessary IRS and SSA documents to make sure we report the expenses/income correctly. Even after all this research, we still have a few questions left unanswered. Calls to the SSA and IRS have proved pointless and unhelpful, so we feel like our next best option is to speak with a CPA familiar with handling taxes for families that employ household workers, or a tax lawyer.

I thought I'd post here to see if anyone on this forum has recommendations for a tax lawyer or CPA that may be familiar with the rules surrounding the above situation (grandparent getting paid to watch a grandchild and reporting that income to social security). AND/OR - does anyone have any personal experience with the same situation?

Thank you!

[Anonymous]

Look up IRS publication 926 about household employees. You do not need to pay employment tax for your parents.

[Anonymous]

Anonymous wrote:Look up IRS publication 926 about household employees. You do not need to pay employment tax for your parents.

We've looked at that publication. My parents are fine with paying both portions of the SS and the Federal taxes since we are unable to pay it, according to Pub 926. The question we have is whether my mother will be able to earn social security credits and claim social security based on those credits earned for watching her own grandson. There is nothing we've found that says she can't, but there's also nothing we've found that says she can.

[Anonymous]

Check a nanny tax service like Breedlove.

[Anonymous]

Anonymous wrote:Check a nanny tax service like Breedlove.

I agree - they'll be extremely helpful to you and easier than finding a CPA. One call to them will likely answer most of your questions very quickly. (We use Breedlove. We have a CPA who does our taxes also but on these issues Breedlove has far more thorough knowledge and expertise - and they won't charge you for hleping you think it through.)

[Anonymous]

Ditto advice for a nanny tax service OP. 4nannytaxes in Virginia is very helpful. We have a CPA and when I asked them they said they couldn't come close to the price they charge.