My wife babysits for our son. She will earn 400 per month. She is 6 quarters short on her retirement needed of 40. How can we report these new earnings to IRS so she can receive the credit for the quarters she is working. I have googled everything and can not find this answer.


THANKS


Jim

Sorry, you CANNOT pay your wife to work as the mother of her own son.

The work has to be recognized as true work.

You can pay your wife, but baby sitting for your own child is not income.

If she has real income, you report her income on your taxes as income and pay self employment taxes ( 15 percent) along with other state and federal taxes.

But again, it has to be real income.

Sorry ATE, I typed badly. My wife babysits for our GRANDSON in our house 5 days a week, 9 1/2 hours per day for $100.00 per week. Now what I need so badly to do is report this income and have IRS send the Social Security and Medicare taxes to Social Security. Fr_Chuck --- I hope this is real income, we spend it!


Sorry I typed wrong


Jim

Okay, different story!

If you babysit for your Grandson, then, yes, you CAN claim it as income on Schedule C and SE and pay income and self-employment taxes on it.

Quote:

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Originally Posted by AtlantaTaxExpert

Okay, different story!

If you babysit for your Grandson, then, yes, you CAN claim it as income on Schedule C and SE and pay income and self-employment taxes on it.

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I understand that part and actually did a practice return, but how does her social security and medicare get reported.


JIM

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