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    Jbert's Avatar
    Jbert Posts: 56, Reputation: 1
    Junior Member
    		  
    #1

    Jan 31, 2008, 10:00 PM
    Paying ss and medicare tax
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 1, 2008, 11:42 PM
    Sorry, you CANNOT pay your wife to work as the mother of her own son.

    The work has to be recognized as true work.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Feb 2, 2008, 04:22 AM
    You can pay your wife, but baby sitting for your own child is not income.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #4

    Feb 2, 2008, 09:59 AM
    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.
    Jbert's Avatar
    Jbert Posts: 56, Reputation: 1
    Junior Member
    		  
    #5

    Feb 3, 2008, 12:56 PM
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Feb 4, 2008, 12:28 PM
    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.
    Jbert's Avatar
    Jbert Posts: 56, Reputation: 1
    Junior Member
    		  
    #7

    Feb 15, 2008, 01:56 PM
    Quote 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.

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


    JIM
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Feb 29, 2008, 01:34 PM
    Answered via email.
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