| bw54867 |
My wife has been baby sitting a child for a while now and she receives $600 per month. Payer has asked for & received receipts bearing my wife's social insurance #. Childcare is provided at my house. Payer provides diapers, food, etc. for her child. So those are the facts.
So is my wife an employee or is she self-employed? Should I even bother claiming the income or just take the chance considering how insignificant the amount is?
Considering that the payer is deducting the childcare expenses I assume that the CRA will look into who is providing the childcare. |
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| stealth |
| First a foremost, tell your wife to stop giving out her SIN number. That is just asking for trouble, no matter how trustworthy the other person may be. It can get into the wrong hands. |
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| bw54867 |
| No, her SIN is required for the paying party to deduct childcare expenses. There is no way around this, its standard practice. |
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| stealth |
| Oh, OK, never knew that. |
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| Blackout-spec |
| since her sin # is used, the govt knows shes being paid by the other person. since its such a small amount, it wont hardly matter anyways. |
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| TrevorK |
| I would think that you're wife would be considered to have a "sole proprietorship" and should declare her income as such. |
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| SilverNeonRacer |
The other question is, does your wife work elsewhere as well?
Being from what we know of currently is a sole proprietorship bussiness she should claim it, then she can deduct a portion of utilities, etc, I think you can deduct a portion of the interest pays on a mortgage as well. |
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| katrink |
| you should be claiming that, it ends up being $7200 a year and that adds up, if she does claim it you can write part of your house and utilities and stuff offf. |
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| Graphicdude |
I just read a book about taxes and what you have to claim and YES she has to claim all of it. She is considered a business owner and she is offering a service. If there were no receipts involved and just a straight exchange of cash, then this wouldn't be an issue.
Once you leave a paper trail, CRA will want their share :( |
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