Can you claim for child care credit on your tax return if you hire someone and paid them cash?

My wife and I both have full-time job, we are hiring someone taking care of our 10 months old son for the last 7 months and paid the babysit cash, we have no receipt from her. Can I claim child care credit on my tax retrurn if I don't have any receipt from the babysit?

Can you claim for child care credit on your tax return if you hire someone and paid them cash?
Yes you can, but make sure you talk to the babysitter before you do this. When you include her social security number on the return it will be shown as income to her. She will then have to report all of this money on her return and might end up owing some money depending on how much she made.
Reply:As long as you have her SS number.
Reply:Send her a 10-99 and she'll have to claim the income and you can claim the child care credit. Just be able to prove it if you get audited. Keep in mind if you claim it and they question her, she might demand more money or tell you to find someone else to watch your child.
Reply:Yes: But you will have to show proof of payment at the audit. Write a letter stating that you paid XXX a certain amount of money XYX during the year of 2006. Have this person sign this letter and notarized, this is enough to make the Tax people smile.
Reply:You need to give the provider's social security number and address when you file so you will need that.





Also, if the service was provided in your home, you will have "Household Employee" issues which can be really fun.





I suggest that you go to IRS.gov and search for "household employee".
Reply:call the baby sitter and ask her to write a reciept or just write a handwritten reciept and have her sign it. heck just write it and sign any name on it. they're not going to call anyone about 20$ a week.
Reply:No.