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Old 03-17-2008, 12:32 PM   #21
Default Similar ? on taxes/babysitting
Jettssy
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Hey group,

I'm a new member here with a similar question. I have been babysitting for a 2 year old boy since July part-time (I am a mom to a 3 year old boy and 16 month old girl as well). I have been watching him for $6/hour and used to watch him for 14-20 hours a week. Now she has put him in daycare three times a week and only has me watch him 1-2 times a week, about 5-10 hours. I recently asked her if she could give me a raise of $7/hour since she cut my hours back so much. She then proceeded to ask me if I planned on claiming watching her son on my taxes, something I honestly never thought about since I thought it would all be "under the table." I said no that my taxes were done for this year. She then proceeded to say that she would prefer not to pay me $7/hour if I do not plan on claiming it on my taxes, since she cannot itemize it.

I would like some advice as to how I should handle this. Should I plan on keeping track of things to claim him on my taxes next year? Or should I agree to keep watching him at $6/hour and keep it "under the table." Is it illegal to not claim?

Any advice would be helpful -- thank you ladies!!
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Old 03-17-2008, 02:17 PM   #22
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BESTMOMMYSAVER
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Hello
well, let me say that: yes, it is illigal not to claim it, bc it was "earned income"
also, the childs mother has the "right" to deducted from her taxes, regardless if you claim it as income or not.
I had this happened, the lady didn't want to give me her SS# for me to claim what I'd paid her.
when i did my taxes, my tax advisor had me fill out a document saying i didn't have the SS# but since I had the ladies name and address, that's all I needed. and yes, I deducted it from my taxes just fine.
I felt it was unfair for me not to claim it,
I WAS ENTITLED TO CLAIM IT, THE LADY WATCHING MY SON JUST WANTED TO PULL A FAST ONE ON THE IRS.
THATS NOT FAIR.
put yourself in that ladies shoes, don't you think its unfair that you are making it harder for her to get what she rightfully deserves.
if you feel you are underpaid, then you tell her that your rates have increased.
if she likes it fine, if not, then she will have to find herself a cheaper babysitter.
thats unfair too! for you not to get the raise you deserve.
Hope this helps you decide
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Old 03-17-2008, 07:04 PM   #23
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Jettssy
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Thank you for your input. I think I will be "shopping" around for another child in need of sitting soon anyways (regarding the need of a raise). I understand why she wouldn't want to pay me more if she can't claim it. Sorry to hear about your situation of the woman not giving you her S.S. #. I think it is wise for people to start talking about this before any sitting occurs, not when tax time rolls around. A lessson well learned here!

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Originally Posted by BESTMOMMYSAVER View Post
Hello
well, let me say that: yes, it is illigal not to claim it, bc it was "earned income"
also, the childs mother has the "right" to deducted from her taxes, regardless if you claim it as income or not.
I had this happened, the lady didn't want to give me her SS# for me to claim what I'd paid her.
when i did my taxes, my tax advisor had me fill out a document saying i didn't have the SS# but since I had the ladies name and address, that's all I needed. and yes, I deducted it from my taxes just fine.
I felt it was unfair for me not to claim it,
I WAS ENTITLED TO CLAIM IT, THE LADY WATCHING MY SON JUST WANTED TO PULL A FAST ONE ON THE IRS.
THATS NOT FAIR.
put yourself in that ladies shoes, don't you think its unfair that you are making it harder for her to get what she rightfully deserves.
if you feel you are underpaid, then you tell her that your rates have increased.
if she likes it fine, if not, then she will have to find herself a cheaper babysitter.
thats unfair too! for you not to get the raise you deserve.
Hope this helps you decide
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Old 03-17-2008, 07:27 PM   #24
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BESTMOMMYSAVER
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really i never asked the lady, bc i knew that legally, i was entitled to claim it.
but i didn't know that i could still claim it even without her SS#
so in the end i still claimed it, and all was ok.
i don't know what the lady did, but if i ever got audited, i had copies of all the checks i wrote to her as proof. so it would have been ok.
but if you do a great job babysitting, you should let her know that your work is "above" average, and that you are worth $1 more per hr.
good luck!
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Old 03-18-2008, 02:48 PM   #25
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WOW...this has been an interesting thread. I just have to say that when it comes to $ and our kids and throwing family and friends in the mix it gets a little hairy! I was in a similiar situation several yeras ago. A co-worker was retiring and was going to watch her grandchild.....I needed a sitter. SHE was happy to take my child. I honestly loved the fact that this person had child dev. training and was a grandma to my child. She was not reporting the income....I honestly was bummed because I had a flex plan which could have saved me 1500 a year! BUT she was upfront...I liked and respected her and I would never just claim the credit and give her name and address unless I discussed this ahead of time or I couldve chosen a daycare. In retrospect I should have encouraged her to report the income and take deductions....all parties would benefit from doing it the correct way. Anyway....this has been a lessoned learned for me. Thank fully I am at home with my kids now but I had the best sitter and it cost me a loss of a deduction but my kids were well taken care of. AlsoI thin k the whole tax thing scares people....and that is probably a big reasion for not reporting this kind of income...or just plain ignornance. Yes this is quite common...I know if several people doing care in there homes and they do not report this income.
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Old 03-18-2008, 03:11 PM   #26
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jlg264
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I've been looking at this thread awhile and I thought I would share what works for me. I pay my sister her asking fee, but I think she is wonderful and I honestly don't pay her enough for how wonderful she is to my kids while I work. She and I claim the money but I always "tip" in cash that way she gets a little extra that she doesn't have to claim and I feel better knowing that I still get to claim the deduction. This has worked for me that last few years.
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