Saturday, July 31, 2010

Using a parent as a child care provider?My mom take care of my child. She doesn't work. Can I still use her?

My mom is unemployed and receives medicare. She takes care of my child while I work. Can I use her as my care provider without anything happening to her medicare benefits?Using a parent as a child care provider?My mom take care of my child. She doesn't work. Can I still use her?
Absolutely. Good for you, great for mom, and your child is benefiting.





Now, if you're paying her, that's a different matter. If she is on disability and medicare, and you are paying her for more than ten hours a week, she is violating the law.Using a parent as a child care provider?My mom take care of my child. She doesn't work. Can I still use her?
Totally separate issues.





If you do not claim your mom as a dependent and you paid her for child care, the expenses are eligible for the child care credit, BUT your mother MUST declare the income on her taxes.





If she babysat at your home, you are supposed to issue her a W-2 and pay the payroll taxes with your tax return. If she babysat at her house, she's self-employed and owes the same payroll taxes (15.3%) if she made more than $400.





If this affects her status with medicare, so be it. If the medicare is based on lack of income, it's not like she didn't work.
Medicare is unaffected; that is based on age. See Page 8 of the link.

No comments:

Post a Comment