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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Dependent Care Claims
Expert: Bruce W. Tyler, EA - 11/5/2009
Question
I have had a few different childcare providers sign off on dependent care claim forms. If they are married and filing jointly, do they have to claim the income and pay income and self-employment taxes no matter how small the amount is? Is it different if they file separately? What if the provider does not claim the amount I claimed on my taxes? One more question for just a part time babysitter, how much money do they make before they have to claim it?
Answer
Hi Julie,
I'm not sure what you mean by "sign off on their dependent care forms" - could you help me with that please?
All income from child care services, no matter how small the amount is to be reported. Ordinary and necessary expenses required t o produce that income are allowed as deductions.
It does not matter if the provider does not report the income, that isn't your problem. Just keep the receipts and proof of payment in case of audit.
Even part-time babysitters are required to report the income, though self-employment tax is not incurred if less than $400 of net self employment income is derived. So, if a 15 year old earns $350 from babysitting all year (from ALL sources), there would be neither SE tax or income tax assessed.
Bruce Tyler, EA
Lancaster, CA.
661-724-1041
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