Springfield Posted January 31, 2016 Share Posted January 31, 2016 So I have a tax question, but I suppose others can ask questions as well... Here's mine: I pay my mother, in cash, to care for our son while we are at work. I know that this qualifies for a tax credit of up to $3,000. Here's the thing. My mother doesn't want to report this as income because it would hurt her situation (she isn't very well off). If I claim the child care credit, it asks for identifying information about the person caring for my child. So, if I claim this child care credit and furnish the IRS with my mother's information, is this going to set off a red flag that she should be reporting more income than they actually are? Thanks for any help that ES can offer. Sincerely your, Tax dodging member Springfield Link to comment Share on other sites More sharing options...
Major Harris Posted January 31, 2016 Share Posted January 31, 2016 Yes, i would not recommend u reporting it and not her Link to comment Share on other sites More sharing options...
Springfield Posted January 31, 2016 Author Share Posted January 31, 2016 Yes, i would not recommend u reporting it and not her Yeah, that's what I'm thinking. It would be nice to claim that expense, but I don't want to hurt my mom. She needs the money more than I do. Link to comment Share on other sites More sharing options...
Major Harris Posted January 31, 2016 Share Posted January 31, 2016 I think 20 years ago it'd be a decent chance to take. But it's way too easy to cross reference now. Link to comment Share on other sites More sharing options...
DButz65 Posted February 1, 2016 Share Posted February 1, 2016 And im worried about forgetting to report a savings bond I cashed that my grandmother bought me back in like 1977 this year. I totally forgot about it until I received a letter about it from my bank the day AFTER I filed my taxes lol , it was only for $357, but dang it! Link to comment Share on other sites More sharing options...
chipwhich Posted February 1, 2016 Share Posted February 1, 2016 And im worried about forgetting to report a savings bond I cashed that my grandmother bought me back in like 1977 this year. I totally forgot about it until I received a letter about it from my bank the day AFTER I filed my taxes lol , it was only for $357, but dang it! I forgot to report cashing a $50 bond once, got a letter immediately. The IRS can almost do your entire taxes with data they have. They don't know your charitable contributions and stuff, but they have a handle on everything reported. Link to comment Share on other sites More sharing options...
balki1867 Posted February 1, 2016 Share Posted February 1, 2016 I'm *NOT* a tax expert by any means, but I know a friend who paid her mom to watch the kid after my friend's mom lost her job. Somehow this counted as a job, the government found out, and her mom lost her unemployment benefits. I'm not sure how the government found out-- but that's at least one real data point that this sort of thing can happen. Link to comment Share on other sites More sharing options...
Duckus Posted February 1, 2016 Share Posted February 1, 2016 So I have a tax question, but I suppose others can ask questions as well... Yea. I wouldn't do it. If it makes you feel better, it's not a $3,000 credit. It is a credit of 20-35% (depending on income) of up to $3,000 in expenses for 1 kid. The income requirements are really low for the higher rates. If your combined income just like 40k+ you are at the lowest 20% rate. 20% of $3,000 (max) = $600 credit. That what I got this year on like 10k of child card costs.... $600 probably not worth the risk of an audit. Link to comment Share on other sites More sharing options...
Sacks 'n' Stuff Posted February 1, 2016 Share Posted February 1, 2016 It would not be wrong of you to not report it since you're just looking out for your mom. It would also not be wrong for you to maybe fudge some other information on there to make up for not getting what's rightfully yours. I'd suggest saying that your son is two sons and also that one is a disabled vet and the other a clergyman. You should also give your name as Vito "The Mangler" Testosteroney. These are things that the irs tends to overlook. Link to comment Share on other sites More sharing options...
justice98 Posted February 1, 2016 Share Posted February 1, 2016 We were in this exact same situation. I was concerned about it, but our tax pro said not to worry about it, so we didnt. Link to comment Share on other sites More sharing options...
steve09ru Posted February 1, 2016 Share Posted February 1, 2016 We've been in the same situation and haven't been able to claim it. I've thrown the amount in just trying different scenarios and it doesn't really seem to make a world of difference. But, if you put him in preschool for a couple days a week then you can end up claiming that (stage we're at now) without messing up daycare costs. Link to comment Share on other sites More sharing options...
dfitzo53 Posted February 1, 2016 Share Posted February 1, 2016 If I was harboring Edward Snowden for part of 2015, can I claim him as a dependent? Link to comment Share on other sites More sharing options...
Major Harris Posted February 1, 2016 Share Posted February 1, 2016 can any of us claim tarpman and gang? Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted February 1, 2016 Share Posted February 1, 2016 Hey, guys, who do you think should break the law: me or my mom? Link to comment Share on other sites More sharing options...
Springfield Posted February 1, 2016 Author Share Posted February 1, 2016 Hey, guys, who do you think should break the law: me or my mom? If nobody claims anything, then I don't see how a law has been broken. I can't give my mother cash gifts because I love her? Link to comment Share on other sites More sharing options...
Predicto Posted February 2, 2016 Share Posted February 2, 2016 If nobody claims anything, then I don't see how a law has been broken. I can't give my mother cash gifts because I love her? Be careful that when you think you know what the law should mean, but don't know what the law actually means, especially when it comes to the IRS. Also be careful when asking for legal advice on a message board. I do suggest you read this: http://www.marke****ch.com/story/how-the-taxman-handles-child-care-2013-04-13 Link to comment Share on other sites More sharing options...
Sacks 'n' Stuff Posted February 2, 2016 Share Posted February 2, 2016 Nuts to that. I will compete any tax return with whatever result you desire for only $29.95 Link to comment Share on other sites More sharing options...
Springfield Posted February 2, 2016 Author Share Posted February 2, 2016 Be careful that when you think you know what the law should mean, but don't know what the law actually means, especially when it comes to the IRS. Also be careful when asking for legal advice on a message board. I do suggest you read this: http://www.marke****ch.com/story/how-the-taxman-handles-child-care-2013-04-13 This is the Internet. Everyone is a tax professional. Seriously though. Thanks for the info. Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted February 2, 2016 Share Posted February 2, 2016 If nobody claims anything, then I don't see how a law has been broken. I can't give my mother cash gifts because I love her? Income is income from any source derived. And I'll leave it at that, because I don't particularly want to get myself in trouble. Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 2, 2016 Share Posted February 2, 2016 But if he gave his Mom less than $14,001 last year, then it could be considered a tax free gift. Right? Thus, no one would have to pay anything to anyone on it. As long as it wasn't for a defined arranged service..like babysitting. Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted February 2, 2016 Share Posted February 2, 2016 Not comfortable answering these. Just because you call something a gift doesn't make it a gift. https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes Link to comment Share on other sites More sharing options...
The Evil Genius Posted February 2, 2016 Share Posted February 2, 2016 Thanks for that LKB. On a side note..I find it a pain that we are bound to report all 1099 INT interest, even if Banks aren't required to send you a 1099-INT form if it's less than $10. I do wonder if I am the only one who tracks that $6.32 interest for the year down and reports it as income. Also..I've ****ed about it for years..but this might be the first year that I'm glad we ****ed up our withholdings. That extra $2k total back from the Fed/State is going to help with the new home/move/repairs to old home. Yay to poor W-4 planning. Link to comment Share on other sites More sharing options...
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