Quote Quoting Heartsick123
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I work overnights, so my sister (who has worked as a full time nanny) stays at my house 3 nights a week and brings my kids to school in the morning. I pay her 150 a week and my bank record shows that payment every week for the past 2 years. I also pay my 20 year old daughter 50 a week for babysitting at other various times (when i have overtime or just need someone on weekdays or weekends) these payments are also on a regular basis. In addition, i pay about 4,000 a year for summer camp (since i sleep during the day). That is obviously on the books.
That comes out to about 1200 a month. I don't think that is unreasonable, but I haven't been able to find any guidelines, so I wasn't sure. That is for 2 kids during the school year and 4 kids for summer camp.
I was more concerned about the fact that I never really thought about doing the whole nanny tax thing because it's my family member and 150 a week didn't seem like a very big deal. So, I guess the question would be if I should change that now. Thanks.
Its not just your sister but your daughter as well. Anytime you pay someone more than 1900.00 a year you are potentially subject to the nanny tax. If you are paying your daughter 50.00 a week 52 weeks a year that is 2600.00.

Now, I am not sure that the bankruptcy court is going to police that particular issue...but if your tax returns do not reflect the full amount of child care you pay for, that would tend to get their attention.

However, I will say that what you are paying for child care when you work nights is pretty reasonable for multiple children.