do I need to fill a Form 1099(Or W2 is the only form for baby sitter?) for a childcare provider under $600?

Question

do I need to fill a Form 1099(Or W2 is the only form to file for baby sitter?) for a childcare provider under $600?
Also, Can I claim the child and dependent care credit without file the form 1099,because it is under 600?

Answer 1

No, you do not need to file a 1099 or W2. Generally, there is no need to file a 1099 for a child care provider. Generally, you only need to file a W2 if you paid a child care provider who worked in your home $1700 or more for the year. Yes, you can still claim the credit.

Answer 2

If the person cared for the child in your home, then you'll likely have to do a W2 and you should have been taking taxes out....



Was this a babysitter? Was the child care provided so that you could go to work or look for work?

Answer 3

And where these services provided to you at.

Were they in your HOME as an employee and you were the employer for this purpose and would have to withhold the social security and the medicare taxes out of the gross pay and you would have to match the FICA taxes and fill out the forms to report them as you were required to do during the tax year 2011.

At the baby sitter home or day care center of that tax payer.

You would be required to have the receipt from the taxpayer for the amount that you paid for this purpose and the taxpayer identification number and the correct name of this taxpayer that would be on the taxpayers social security card in order for you to be able to fill out the form for the child care credit amount correctly PROVIDING that you do meet the rules that you would have to meet for this purpose and time in your life.

Taxpayer identification number needed for each qualifying person. You must include on line 2 of Form 2441, Child and Dependent Care Expenses, the name and taxpayer identification number (generally the social security number) of each qualifying person. See Taxpayer identification number under Qualifying Person Test, later.



You may have to pay employment taxes. If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer who has to pay employment taxes. Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. See Employment Taxes for Household Employers, later.



http://www.irs.gov/publications/p503/ar01.html

Introduction



This publication explains the tests you must meet to claim the credit for child and dependent care expenses. It explains how to figure and claim the credit.



You may be able to claim the credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. The credit can be up to 35% of your expenses. To qualify, you must pay these expenses so you can work or look for work.

Hope that you find the above enclosed information useful. 04/11/2012