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    Purenv's Avatar
    Purenv Posts: 1, Reputation: 1
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    #1

    Jan 24, 2011, 11:50 AM
    Can I or Do I claim my daughter under the Nanny tax?
    My older daughter babysits for me so I can go to work until my Husband gets home from work ,approx 6 hours a week . Can I claim this ?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #2

    Jan 24, 2011, 11:52 AM

    Do you pay her? Is she legally an employee or a 1099 contractor?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 27, 2011, 03:25 PM
    Yes, you CAN pay your daughter and yes, you can claim the Child Care Credit for the money you pay her.

    However, you then need to file Schedule H on YOUR tax return to report and pay the FICA taxes due on that income. Form 1099-MISC is NOT an option because NO IRS auditor will believe that your daughter is NOT your employee.

    All things considered, it just might be better if you keep her pay off the books and simpy forego the Child Care Credit.
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