TAX ?: How Much Money Before Claiming?

[spencersmommy]

My SIL did some child care for us this year. How much money does she have to make in order to claim? Or does she have to claim for $1300? Thanks in advance, I am trying to finish our taxes!

[searchdog]

I think it is $600 here. I would say that probably no matter what $1300 needs to be claimed it is quite a bit. Make sure she knows you are claiming it as a deduction on your taxes becuase if you do and she doesn't pay taxes on it she could end up in trouble.

[omgrown]

I"m certainly not a CPA but if the 1300 was all she made for the year, I don't think she needs to claim. However, if she made other money in addition, she will have to claim the childcare money if the total of all income is over the minimum (I think its around 4k, but don't quote me on that). Less than $600 from any one source does not need to be claimed, regardless of total income.
Again, I'm not an expert, just what I remember from the last couple years not earning much.

[cbm]

I assume you are talking federal taxes. I am not an expert, but I believe $1300 will have to be claimed. In business, when you hire a contractor, you have to provide a 1099 if the contractor has been paid $500 and up. Following that line of though, she qualifies as somebody providing a service even if she doesn't get the 1099.
For more information, you can check on the IRS website. There is plenty of information there.
I also suggest you talk to a CPA, better safe than sorry.

C.