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Daycare and Taxes>Tax Programs/Do It Yourself
happykidschildcare 02:43 PM 03-31-2011
what programs do you recommend for do it yourself'ers??
and Tom if I paid my adult daughter for asst me in daycare, whats the limit of the gift amount I can give her? and at the same time can I claim her as a dependant since she lived with me all year?
under gifts do I put to daughter for asst in daycare or?
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TomCopeland 03:33 PM 03-31-2011
I generally don't recommend using any commercial tax software programs unless you know what you are doing. See: http://www.tomcopelandblog.com/2011/...-software.html

You can use my 2010 Family Child Care Tax Workbook and Organizer to do your own taxes. (www.redleafpress.org)

If you paid your adult daughter to work for you you must treat her as an employee and withhold social security taxes and pay state and federal unemployment taxes. Instead, you could not pay her for work but give her gifts. That way, the money is not subject to payroll taxes, is not income to your daughter, but is not deductible to you. See: http://www.tomcopelandblog.com/2011/...ve-or-not.html

See the Instructions to Form 1040 to determine if your daughter can be your dependent. There are many questions I'd need answers to before I could answer this.
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happykidschildcare 05:20 PM 03-31-2011
How much can I claim paying my daughter without having to do actual payroll, taxes etc?
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TomCopeland 09:25 AM 04-01-2011
Since your daughter is age 18 or older you must withhold social security taxes and perhaps state unemployment tax. There is no small amount you can pay her and not be subject to payroll taxes.
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Tags:mmk, payroll taxes, provider children hired, tax software, tom copeland, turbo tax
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