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Old 03-28-2018, 08:56 AM
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Default Teen Babysitter and Tax Receipts Question

My teen daughter babysat part time for a woman from January through March of this year and then quit the job. The total she earned was less than $1,500.00. The mom would like a tax receipt for 2018.

My daughter probably will not continue doing child care, or if she does it will only be part time or occasionally, and she will not be babysitting for this mom again.

In this situation would you suggest that your daughter get an EID number to use on the tax receipt, or would you feel safe just using her social security number?

Are there any downsides to having an EID? I'm thinking she may be audited more often since it will appear that she is a teen age business owner! But she's just a 16 year old babysitter!
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Old 03-28-2018, 09:02 AM
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Here is some good info about teens, babysitting and taxes

http://teensandtaxes.com/tag/babysitting/

https://pocketsense.com/federal-inco...come-2962.html
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Old 03-28-2018, 10:16 AM
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https://www.irs.gov/pub/irs-pdf/fw9.pdf

W-9

https://www.irs.gov/pub/irs-pdf/fw10.pdf

W-10
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Old 03-28-2018, 11:58 AM
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TomCopeland TomCopeland is offline
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Default babysitting

Quote:
Originally Posted by Unregistered View Post
My teen daughter babysat part time for a woman from January through March of this year and then quit the job. The total she earned was less than $1,500.00. The mom would like a tax receipt for 2018.

My daughter probably will not continue doing child care, or if she does it will only be part time or occasionally, and she will not be babysitting for this mom again.

In this situation would you suggest that your daughter get an EID number to use on the tax receipt, or would you feel safe just using her social security number?

Are there any downsides to having an EID? I'm thinking she may be audited more often since it will appear that she is a teen age business owner! But she's just a 16 year old babysitter!
I always recommend everyone get an EIN (not EID) to reduce the chances of identity theft. There are no downsides. She is working and earning money, no matter her age.
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Old 03-28-2018, 12:09 PM
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Thanks! My thinking is that if my 16 yr old daughter gets an EIN the IRS will consider her a business owner and maybe she'd be more vulnerable to audits in the future. She really did not enjoy this babysitting position and I doubt she will do it again, but I wonder if the IRS will question why a business owner only made $1,500 in a year!!

This mom wants her tax receipt now. I feel like we don't need to give it to her till the end of the year so I can think about the SSN versus EIN issue.
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Old 03-28-2018, 03:08 PM
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Quote:
Originally Posted by Unregistered View Post
Thanks! My thinking is that if my 16 yr old daughter gets an EIN the IRS will consider her a business owner and maybe she'd be more vulnerable to audits in the future. She really did not enjoy this babysitting position and I doubt she will do it again, but I wonder if the IRS will question why a business owner only made $1,500 in a year!!

This mom wants her tax receipt now. I feel like we don't need to give it to her till the end of the year so I can think about the SSN versus EIN issue.
The parent can still claim their child care expenses without a tax receipt from your daughter.

I would assume the family paid via a check?
If so, there is their proof of payment.

The IRS asks for an EIN or a SS# but there are many providers that don't issue either but that doesn't really stop the family wanting to claim their expenses from doing so.

I know your daughter isn't a child care provider (as a business) but this article from Tom Copeland explains what I mean about a parent wanting to claim their expenses and not having the form to do so...

http://tomcopelandblog.com/truth-end...ent-receipts-2
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Old 03-29-2018, 09:37 AM
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We decided to go ahead and get her an EIN. I think that was the best decision and she agrees. Thanks everyone for your input!
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