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Reply to "Grandparents as paid child care providers. Help me figure out taxes!"
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[quote=Anonymous]I am so lost here. My parents acted as our child care last year full time (40 hours a week) and we paid them. The year before, they did some babysitting but were also working part-time. This year, they are retired and this is their only income, other than payments from pension. What do we need to do as far as taxes? Googling has shown me nanny tax information, but there are exceptions if the nanny is your parent. I just want to make sure we’re doing what’s legal—and my parents want to file taxes with our payments as their income. [/quote]
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