I hoping someone knows the answer because I can't find it!
I have a Flexible Spending Account set up because we use childcare regularly. I didn't put in a ton of money because DS started daycare in June and would only be PT for the most part.
My question is, when my cousin works for me as a nanny (I pay her because she needs the money and I need the care) can I submit a claim to my FSA? At what point (money-wise) would she need to claim it as income?
On the rare chance that I don't use all I've put into my FSA account, I'd like to be able to claim what I've paid her, but I don't want her to have to pay taxes if she only works for me a handful of days.
TIA!
Re: FSA and occasional babysitter?
hmmmm... I might try the Money Matters board as well and I'll report back!
You don't have to pay taxes as long as you pay her less than $1000 in each quarter and less than $1600 for the entire year.
Mommy to DD1 (June 2007), DS (January 2010), DD2 (July 2012), and The Next One (EDD 3/31/2015)
Flyer, thanks for the link, but I'm not sure it's what I was looking for exactly. That info says that I don't have to pay employment taxes, but I was wondering if I could use pre-tax dollars to pay her and if she had to claim the income.
On the Money Matters board, they said yes, she would have to claim it because it is income and I understand that since she's over 18, etc.
I think I'll just pass on trying to use the pre-tax dollars, anyway, but thanks for all the help everyone!
If her self-employment income is over $400, she needs to claim it. Keep in mind that this doesn't just include self-employment income from working for you, but also any other babysitting, etc. that she does.
Mommy to DD1 (June 2007), DS (January 2010), DD2 (July 2012), and The Next One (EDD 3/31/2015)