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  #7  
Old 01-31-2006, 08:07 PM
Gene E. Utterback, EA
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Default Re: Repercussions of babysitter paid in cash

"Missy" <mytax[at]yahoo.com> wrote:

- quote -

> Where does the baby sitting occur? Your house, she is your
> employee. Her house she should get a 1099misc. In either
> case, you/wife should have gotten the SS#, name, address at
> the beginning of the sitting. If you cannot get the SS#, you
> are SOL.


There is no 1099-MISC unless the sitter was paid in the
course of the taxpayer's business, which I seriously doubt.

Otherwise, I agree - if the services were provided at the
taxpayer's house then the sitter is likely an employee.

Gene E. Utterback, EA, RFC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #6  
Old 01-31-2006, 08:06 PM
Stuart A. Bronstein
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Default Re: Repercussions of babysitter paid in cash

jik[at]kamens.brookline.ma.us (Jonathan Kamens) wrote:

- quote -

> As far as I can tell, if the OP truly wants to make this
> right and comply with the law now and in the future, the
> only realistic solution is to (a) find a new babysitter, (b)
> inform the old one that her wages are going to be reported
> to the IRS, and (c) hire a good accountant with experience
> representing clients before the IRS to help straighten out
> the mess.


Or (d) pay her enough extra to cover the taxes withheld from
her check.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #5  
Old 01-30-2006, 03:17 AM
Jonathan Kamens
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Default Re: Repercussions of babysitter paid in cash

- quote -

> Why do you care what happens to her? You're the one who's
> complying with the law. Whether she does or not is not your
> concern.


Phil Marti has already explained rather starkly why the OP
cares what happens to the sitter. She is responsible for
the well-being of his child. It's not a good idea to do
something that royally pisses off the person in whose care
you leave your child on a daily basis. Even if the sitter
isn't the type who would actively take out her anger on the
child, her attitude about the arrangement would certainly
change, and it's unlikely that she would be able to
completely hide her hostility from the child.

As far as I can tell, if the OP truly wants to make this
right and comply with the law now and in the future, the
only realistic solution is to (a) find a new babysitter, (b)
inform the old one that her wages are going to be reported
to the IRS, and (c) hire a good accountant with experience
representing clients before the IRS to help straighten out
the mess.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #4  
Old 01-30-2006, 02:39 AM
Phil Marti
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Default Re: Repercussions of babysitter paid in cash

"David Woods" <davidwoods[at]verizon.net> wrote:

- quote -

> Why do you care what happens to her? You're the one who's
> complying with the law. Whether she does or not is not your
> concern.


I had no patience for OP, who seemed to me extraordinarily
greedy, but someone who wants to legitimately hire domestics
can face a stone wall over taxes. No under the table, no
work.

Sometimes it's just greed, as it was when I faced the issue
over my parents' care. Sometimes it's immigration status.

Sometimes it's just ignorance, and the employer could pay
the employee a decent wage and do everything aboveboard, but
too often we come back to basic greed.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #3  
Old 01-29-2006, 07:20 AM
Missy
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Posts: n/a
Default Re: Repercussions of babysitter paid in cash

Where does the baby sitting occur? Your house, she is your
employee. Her house she should get a 1099misc. In either
case, you/wife should have gotten the SS#, name, address at
the beginning of the sitting. If you cannot get the SS#, you
are SOL.

Missy Doyle

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #2  
Old 01-29-2006, 07:19 AM
David Woods
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Default Re: Repercussions of babysitter paid in cash

"tushin1[at]gmail.com" <tushin1[at]gmail.com> wrote:

- quote -

> We have a babysitter five days a week. We pay her in cash,
> per her request, at the end of each week. She claims that,
> in the beginning, she told my wife that she does not claim
> this as income and that we cannot claim child care on our
> taxes. I was unaware of this arrangement. Now I want to
> claim child care since we'd get back a nice chunk of change.
> If I put the babysitter's info in my return w/o her SSN,
> what can happen to her and, most importantly, what can
> happen to me?


Why do you care what happens to her? You're the one who's
complying with the law. Whether she does or not is not your
concern.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #1  
Old 01-29-2006, 06:59 AM
James Lewis
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Default Re: Repercussions of babysitter paid in cash

<tushin1[at]gmail.com> wrote:

- quote -

> We have a babysitter five days a week. We pay her in cash,
> per her request, at the end of each week. She claims that,
> in the beginning, she told my wife that she does not claim
> this as income and that we cannot claim child care on our
> taxes. I was unaware of this arrangement. Now I want to
> claim child care since we'd get back a nice chunk of change.
> If I put the babysitter's info in my return w/o her SSN,
> what can happen to her and, most importantly, what can
> happen to me?


Get her SS# and file it correctly. If you don't want to ask
her for it because you don't want her to find out you
reported it, IRS will eventually find out. They will ask you
to supply her SS# when they see it is missing. You also are
supposed to file payroll reports, including a w-2 form,
etc....

Mike Lewis, CPA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 01-29-2006, 06:18 AM
Phil Marti
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Posts: n/a
Default Re: Repercussions of babysitter paid in cash

<tushin1[at]gmail.com> wrote:

- quote -

> We have a babysitter five days a week. We pay her in cash,
> per her request, at the end of each week. She claims that,
> in the beginning, she told my wife that she does not claim
> this as income and that we cannot claim child care on our
> taxes. I was unaware of this arrangement.


Conspicuously absent is your wife's version of events. I'd
tend to believe the babysitter since she's clearly been down
this road before. This is pretty much the same conversation
I had with potential caregivers for my parents before I
threw them out of the house.

- quote -

> Now I want to
> claim child care since we'd get back a nice chunk of change.
> If I put the babysitter's info in my return w/o her SSN,
> what can happen to her and, most importantly, what can
> happen to me?


Rest easy. You can, with your wife's blessing, leave your
child with a thief and get your tax break. See "Due
Diligence" in the Form 2441 instructions. See IRS
Publication 926 for your other responsibilities if the
babysitting is in your home.

As for what will happen. We can only hope that the IRS
doesn't contact her while she's alone with your child. Much
better that she just not be there when you go to dump the
kid the next day or just not show up, depending on where the
babysitting occurs.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 01-28-2006, 04:00 AM
tushin1@gmail.com
Guest
 
Posts: n/a
Default Repercussions of babysitter paid in cash

We have a babysitter five days a week. We pay her in cash,
per her request, at the end of each week. She claims that,
in the beginning, she told my wife that she does not claim
this as income and that we cannot claim child care on our
taxes. I was unaware of this arrangement. Now I want to
claim child care since we'd get back a nice chunk of change.
If I put the babysitter's info in my return w/o her SSN,
what can happen to her and, most importantly, what can
happen to me?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

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