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Taxes and Child Care...help!?
I have been babysitting a little girl in my home for 1.5 years now and when her parents and I agreed on what I would charge etc. we also agreed to "pay under the table" and leave taxes out of it since it would be cheaper for both and only a few hours a week. Well now on tax day, today, she send me an email that says she needs all my info for her taxes? What do I do? She has not been paying me taxes, and or paying me more to cover taxes. She only pays $5/hour so if she wants me to be taxed on $5, she's nuts! She knows I am not a licensed daycare provider so I am just a bit confused on what the heck is going to happen now. HELP!!!!
I have already filed my taxes, so what do I do now if I want to make it legit? I am fine with being legal obviously its just that we agreed we were doing under the table and now today on the 16th she asks for my info? It's just crap!
3 Answers
- CaCO3GirlLv 71 decade agoFavorite Answer
Just tell her, "I already filed my taxes and did not include your payments because i thought that is what we agreed too, I also don't have a tax id number for you to claim the child care cost, is this something you would like to change for next year?"
- mrreliable3599Lv 71 decade ago
You agreed to "pay under the table" (otherwise known as "commit tax fraud").
The other person was getting their taxes done, didn't like the result, and started fishing for any additional deductions and credits. All of a sudden, the "pay under the table" doesn't seem like such a great idea.
You do have a tax ID number. It's called a "Social Security Number."
She won't issue you a 1099-MISC. That's issued only by businesses. But it won't matter. All the info is listed on her tax return. Even if you didn't provide your Social Security number, she just put down your name and address and "not available" on the form.
What should you do? Report all your income and pay income tax and self-employment tax. Then it's all legitimate and the other person can report it all she wants.
The IRS is going to look at her return and match with your return. You might as well pay it yourself instead of waiting for them to catch up with you.
And in the future, don't make illegal deals with people.
- 1 decade ago
what will happen is she will get a tax credit (BREAK) while you get screwed she will then hand you a 10 99 for and you will have to pay taxes back to the irs for however much you've made for the year hope this helps
