Do All Babysitters Expect to NOT Report Income?

What the babysitter is doing is tax fraud. Wow, I can't believe people are actually condoning it!

You can still deduct your payments, AND YOU SHOULD. All you need is her name and address. If she doesn't provide other info. you need that isn't your problem. The IRS may/will follow up with her.

@Dad on Purpose - really? The babysitter should not have to pay any taxes and Mom2Two shouldn't get the benefit from the deduction on her taxes? Where does that make sense? If I need the deduction, by God I am going to take it!!!!

I pay my taxes and I expect others that earn an income to do so as well, especially if my money is providing part of their income.

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Exactly everything Live Bold said. You can still claim it. She does not hold the power here. Talk to your accountant. As providers we are not required to give this info to parents, they are required to keep their own records. It IS in our best interest to make sure we are both reporting the same numbers, but just because she is being WRONG about it, does not mean you have to take the fall here.

And yes, all the stuff she also said about what we bring in vs. whats left over. I could go on for pages as well with expenses I would not have without daycare in my home (and my child is 17 so for many years NONE of this stuff would need to even be in my home at all).

This not reporting income thing is a HUGE pet peeve of mine for my industry and strikes of unprofessionalism to me and my peeps locally. We strive for and push for licensing (even tho its a PITA and sometimes truly unreasonable to do and deal with), and for legit business practices. I am sorry you are having a different experience as a parent.

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You know what, I'd be VERY grateful to know this about my sitter, because her refusal to declare her income to Uncle Sam and pay "her fair share' gives you a great clue as to her character. If I were in your shoes, I would find a new sitter who can present with a W-9 once you offer her the position, and then give your current sitter notice.

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Okay, big deep breath...

First of all, I do agree with you that she needs to report it and NO not all of us feel that way. BUT, we are not all babysitters either. I despise being called a babysitter because it lumps me in with all the fly by the night people that don't put much into this.

However... You do the math and your math will be wrong. Whatever you are paying, times 5 kids, minus a BOAT LOAD of expenses = probably quite a bit less than what you are making.

What is so sad about this is that she probably would not owe very much at all and her spouse could make up for that by making small adjustments on his w-4 he has on file at work. He would make a bit less and she could give him walking around money to make up for his paying her taxes.

It seems to me that I remember that you are paying a rediculous low amount of 150 for 2 kids. I think I migh be confusing you with another mom with the same problem. But even so, just a little math on the what if of 75 per week... If she has 5 kids, then that's only 375 per week, minus food, crayons, glue, tape, construction paper, movies, wear and tear on her furniture, cribs, toys, baby wipes (parents don't send enough), extra utilities, extra laundry, extra cleaning supplies, wear and tear on her floors and walls, extra cost for tax preparation (probably one reason she doesn't want to), and I could go on for pages. After subtracting all the expenses, then taxes must be paid as well. Self employed people pay higher social security taxes. Even if she is charging more than this, I bet you she's not making near as much as you think. What about times when people move away, lose jobs, etc? Just this week alone I've taken in 2 bad checks and one of my moms just blew up her car in front of my house and another mom told me she's in trouble at work. Anything can happen at any time.

You need to find a new provider anyway and you need to give her name and # to your tax preparer and file against her anyway. You don't need her social security. The government will check her out.

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She is an unlicensed daycare provider. I'm a bit surprised you didn't know this before you started sending your children to her. It is what/how she operates. You are expecting her to change the way she has operated (possibly for years) for you. You are trying to control her.

If you don't like it, research other daycares in your area, make sure they are licensed, and use them. It's your money, spend it where you want.

Like I tell my kids, you can do what you want with your own body (or family or money or whatever), but you can't tell someone else what to do with theirs.

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You can still file your 1040, you will just have to leave her SSN off of it and paper file it. If you are close enough to an IRS office I would hand deliver/file it there and have a copy of it with you so they can stamp it received. You can also attach a letter stating that you have tried to obtain the SSN of the childcare provider but they are refusing to give it to you.

Good Luck

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"If that's how you're going to be"??? What-honest? Everyone who derives income should report it! When you don't it's called...illegal!

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I always had the tax payer ID for those that provided care for my daughter because I used a flexible spending account and I wanted to "save" money by having it taken out pre-tax.

Very surprising that she makes more than you do though. You have two of the five children = 40%....you pay your summer "babysitter" (not Sea World camp, not a private nanny, not camp at a university) more than 40% of your net pay?? I can do the math.

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I think a lot of people work under the table and for occasional sitting, I don't really worry about it. That's between them and the IRS. However, if it's their FT gig, she should be counting it. She's mad because she's unlicensed and not reporting it and if you report it, she will have to. Many people work jobs where if they hire someone who doesn't report it, THEY can be in hot water. I work freelance. I report my income. Yeah, maybe I don't bring home a heckuvalot because of what our family owes, but I'm not going to get us audited.

It sounds like you need a new caregiver anyway. She's basically said she's done. I'd find someone who can be above board and pay the extra or hire a 17 yr old who doesn't report taxes (I didn't, when I babysat summers in HS) but then don't report the expense.

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You aren't the income police - let it go.

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I agree with the idea that if she paid taxes, you'd have to pay her more but that doesn't make you the income police to question this! Of course it's wrong. The rest of us pay taxes... I'm sure she just got super defensive and nervous, knowing she's wrong. And no, not all sitters don't report.

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Were you paying her a low rate compared to childcare facilities? I really hope that if you were paying a low rate that you really consider what you are attempting to do to this woman that you said was wonderful to your kids & you were definitely going to use her again this summer no matter what.

People really need to pay their taxes, after all it is the law. BUT if you got a *deal* on childcare then I believe you need to do the right thing and let it go. It's unfair to get a break but then decide you want a bigger *break* after the work was done. Also it's not up to you to assume that she makes so much money or more than you do, you are only seeing a small picture, isn't this just seasonal work, so if you spread out the 2- 3 months of childcare over your 12 months of work, I doubt she is bringing in more than you.

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yeah, it's not cool. i think i'm one of the few waitress/bartenders i know who actually claimed what i made.
do you know her expenses? you probably don't actually know what she nets. but that's not the point, your only concern is your finances. well, and her attitude, which clearly stinks.
i'd claim the deduction anyway and find a new daycare provider. if she's that bound and determined to make the rest of us carry her tax burden, she should have made that very clear before you incurred the expense of using her.
khairete
S.

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Think of it this way, you would be making a few hundred more on your taxes.. but if she were to report it, you would have to pay her a few hundred more for her to make much of a profit. Childcare taxes are insane. So cost wise, it probably evens out for you in the longrun.

And of course, "all" is a generalization, there are many legitimate sitters who do it correctly. One reason you have to get this kind of information up front and discussed when doing your contract. Many childcare providers operate this way, not all of course. You can still report your childcare expenses.

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I never reported my income and I was ft. I am sure she loves your kids but having the headache of having to report every quarter she does not want to deal with. So be it why judge. Besides the government cant balance their check book or pay their own taxes leave the little people alone. If you dont like it put her with a licsened daycare and have a tax id for them.

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The short answer is yes, many do. My sister had a hard time finding a nanny who was OK with taxes, and they charge more because they take home less. My sister's husband is a lawyer and he does political work so they have to make sure that everything they do is aboveboard with household employees and childcare providers but for average people, especially when it's a seasonal arrangement, it's not worth making an issue out of it. While my kids have always gone to licensed centers for daycare and after-school programs, all of my summer sitters have worked tax free and that's the expectation. Some were former daycare teachers collecting unemployment, some were college students or recent grads.

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My mom watched 4 to 5 children in her home in the 80's and reported it and paid taxes. It was a given.

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Hi, Mom:

Your babysittter needs to be held accountable for her inappropriate actions, not cooperating with you in giving you her information for you to file your taxes. She is stealing from the citizens of our country by not doing the right thing. Call or write the Better Business Bureau or the Chamber of Commerce to inquire what you need to do to solve this issue.

Thanks for doing the right thing.
Good luck.

D.

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Baby sitting out of one's house is a major cash business.

Years ago, my son's sitter worked from her home, but she had the tax discussion with her parents up front. If they needed the tax deduction (like I did) then she claimed it and provided an annual receipt. I think her parents were 1/2 and 1/2 on claiming it on taxes.

Many of the moms that I know who do this do not report all of their income. Is it right? Eh, not really. I mean I have to pay taxes on everything I earn from my regular job and my consulting work. But, I just don't worry about it - we all have the same chance of getting audited.

If you need the tax deduction, you may have to find a different sitter. :(

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First, you absolutely CAN claim the deduction without your provider's SSN. Read this for more:

http://www.irs.gov/faqs/faq/0,,id=199777,00.html

Second, find another provider, and make sure you get the information you need as well as clearly communicate that you will be providing it to the IRS up front.

Whatever her reasons for refusing to report her income to the IRS, she was hostile to your request for information, and she has told you that she is OK stealing from the government and from you (since she thinks her refusal to provide the information means you will not be able to take the deduction), which should be a complete dealkiller.

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I do know that most folks who do baby sitting in theirs homes tend to be this way. I personally think if you were wanting a tax right off you would go to a daycare center, but you did choose to go with a probably less expensive more personal choice. She is a very small business and depending on the laws in your area she might not have to be licensed and report the earnings. Of course, if a daytime sitter has to report her earnings then so should the night time sitter. By the way, night time sitters make more money than daytime sitters. So, this is careful water to tread in. I never claimed my child care because I believed it was part of me getting out and working. You do not claim your utilities on your taxes or your groceries, therefore why would you claim this bill. Take your tax credit you already get for having your under 17 year old child. Or... good luck finding your new sitter. I apologize for sounding so cold hearted about this, but claiming childcare when there is already a tax credit for this in place just bugs me.

If she is state licensed or county certified she is legally obligated to not only report her income, but to provide you with a written receipt so that you can track your payments. If she is not certified or licensed, you should reconsider having her watch your kids. If your child was injured or became sick while in her care you would have very little recourse. I was a daycare provider for many years and always reported my income. The tax benefits of operating a home daycare are HUGE!! For example... I made over $30,000. per year, however with all of the available deductions my taxable income was only about $12,000. So if she is not filing her taxes, she and you are both missing out. But as many others have said, you can still claim your daycare expenses without her info. Call your state dept. of child welfare or look it up on line. There are lots of good childcare providers out there. You should find another one.

My sitter does report her income and had no problem giving me her info up front to do so. That said, I did ask that question when interviewing people and found that she was the ONLY one that reports her income. Most people said they just don't make enough. She only charges $10 more per week than the other people I interviewed so I think it was a matter of not wanting to file. It seems most people view babysitting as an under the table type of arrangement. Not saying it's right, just saying that's how it is for most. I think the reason she is "so quick to write off" your kids is b/c she is nervous - if you report her, this could be a really big deal for her - she's guilty of tax fraud after all!

I think it's a good question to ask up front since some sitters don't claim the income on their taxes. If they ask you to pay in cash, that's a good indicator.

If you clam it on your taxes she has to clam it. And more than likly if she is keeping that many kids and not licensed she's probably not supposed to. I would check out the laws in your state. I have had sitters not clam it but they only kept my kids and no others.

if its a business yes id expect her to file. but not if it was just my kids. this is something that i think should have been discussed before the start of using someone. not something most think of beforehand though. for next year either find someone else that files, ask her to lessen your payments by the amount shes saving or half of what shes saving to meet halfway or suck it up. i was a babysitter also and was able to charge less than everyone else because i didnt file. so if you are going to want her to she may chooseto raise her rates. is she cheaper than a daycare? if so then you already got your tax break.

Just throwing in my 2 cents.... When my oldest turned 12 months I went back to work full time (teaching). My husband would drop our daughter off at the babysitter's house at 8am and I picked her up at 4pm. We all LOVED this sitter. I was happy at work knowing my daughter was happy where she was. The sitter told me up front that she does not file, and that is how she was able to charge so little for her work. I paid $100/week. I think we can all agree that that is LOW (even though it was 9 years ago) We never even discussed the 2 weeks off at Christmas and Spring Break, but because she was charging me so little, and because we loved her, I paid her for those weeks as well.

Anyway, I'm not condoning your sitter not filing (if she makes over $10k or whatever it is, and she charges you enough). But I guess I'm just hoping you're looking at the whole big picture. I don't know what she charges you. But if it's ridiculously low then I understand where she is coming from. Personally, my situation was a win-win. Don't know if you have the same thing? Good luck to you.

Hi,
I'm guessing you probably get a good rate for the babysitter or else you'd have a nanny just for your kids or in cmap etc. And its sad everyone saying its the law etc she HAS TO FILE> Technically its not the law if she makes less than $9500 a year. A tax friend of mine says, b/c you don't make enough make enough money to actually pay taxes & oew money to the government. Like me I only do childcare Tues mornings and only made 777 this year but I am going to file to get income tax credit. So yeah unless she made that much she technically doent not have to file. But you can still childcare expense etc. But if you already talked to her and she doesnt want to file then its a good idea to start looking for another babysitter and talk to them first about filing etc and set all your expectations on the table first, maybe get a contact signed etc.
P.