FSA 5000k-Will I lose without taxid
Hello- I have a kid in kindergarten going to a private school and after care to a place near my house. But the aftercare doesn’t have a tax id. Does this mean my $5000 is gone I have filed for an extension. #cpa #irs #tax
What do you mean they don’t have a tax id?
The lady takes cash. And she is not ready to share her tax id
https://www.irs.gov/faqs/childcare-credit-other-credits/child-and-dependent-care-credit-flexible-benefit-plans I would assume this puts you at a higher risk for audit, but you should still be able to claim it.
Ask a friend or relative who is willing to give their tax id. They will have to show this 5000 as income in their tax return. You can compensate them the tax they will pay for additional 5k in their income. So you will end up loosing some money but not all
Someone already received that income and should be reporting it on their tax return. OP should be able to use that tax id…
lol wtf Win98. That’s illegal. Love how so many blinders have no issue breaking law. Really good insight into ethics of big tech
I don’t think. She maybe using it as cash. As she always took cash payments only 😓😭
Yes you will
You are setting both up for audit. Be ready and warn her. You probably should have expected that if she was taking cash only that she had no plans to report this income. If you want all the tax benefits the system offers, you need to work inside the system.
She is not paying taxes. You want to claim tax break. It doesn't fly with IRS. To save 5000 being lost, negotiate with her to give you proper receipt with verifiable social security card and pay some portion of tax - say $500 extra. I am pretty sure, she will not file taxes. But, you can unlock 5000 with 500 loss. Next year onwards, negotiate with daycare provider your expectation of receipt or don't contribute to dependent care flexible account
5000k != 5000
I got really excited for a second thinking somebody had really messed up on their FSA allotment