TJG210 LSU Fan New Orleans Member since Aug 2006 18463 posts Online
Best way to claim babysitter on our taxes......... (Posted on 12/7/12 at 9:48 am)
My wife and I employ a babysitter full time for our twin girls.....everything is paid for properly. Is it better to claim this on our taxes or for each of us to contribute the max to our FSA account?
Even if we both contributed the max, it wouldn't equal to her pay.....would we then be able to claim the difference on our taxes?
TJG210 LSU Fan New Orleans Member since Aug 2006 18463 posts Online
re: Best way to claim babysitter on our taxes......... (Posted on 12/7/12 at 9:56 am to Pierre)
They are 8 months old......but it works out that it's probably cheaper for us to pay for a nanny than day care. Especially when you consider not having to scramble to find someone on sick days, and then not having to bring them or pick them up......a nanny is definitely something that makes our life easier.
TJG210 LSU Fan New Orleans Member since Aug 2006 18463 posts Online
re: Best way to claim babysitter on our taxes......... (Posted on 12/7/12 at 2:39 pm to Catman88)
Right, but that doesn't tell me if its better to use the flex spending account to partially pay for the sitter, and deduct the rest. Or just deduct the entire lot.
re: Best way to claim babysitter on our taxes......... (Posted on 12/8/12 at 11:02 am to TJG210)
If you're doing your return yourself or if you are paying a professional to prepare the return, run your scenario through a tax preparation program with all your various choices. See which one choice then gives you the most favorable bottom line. Without actual numbers, no one can give you the exact best answer. Child care credit has limitations, btw. And if you report the babysitting fees on your return, you have to furnish the social security numbers of your babysitters. The IRS uses that information to make sure your babysitters include that income on THEIR return.
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