Dependent care paid to a live in care provider ?

[Eli]

Clients paid a child care provider 4800 to care for 2 children. When I asked for the care provider's info they gave all the info. I noticed the address they gave me for the provider was the same as theirs. I asked if this person lived with them or just cared for the children in their home. They said the provider lives with them. They have an agreement to let the provider & her child live with the taxpayers & care for their children. Looking at Pub 503, I'm inclined to say this is probably a household employee & subject to employment taxes.

Never having come across this before I would love to hear from some one with more experience with this to see if I am correct or not on this.

Thanks

Eli

[RoyDaleOne]

The different between an independent contractor and an employee

checklist ia available from IRS. Note as I recall there are up

to say 15 factors to consider when making this determination.

Sorry can't help.

[BulldogTom]

Eli, did you get my PM?

Tom

[Eli]

Eli, did you get my PM?

Tom

Got it & just responded. I appreciate your input!!

Eli

[kcjenkins]

I agree with you, this would be a clear case where this is a household employee. The payments would qualify for the 2441 deduction, as long as it was only for childcare, and not for cleaning, cooking, etc as well. But the payments should be reported on a W-2, and a Sch H filed as well as the 2441.