I pay my mom to watch my kids while I work. It carts but between 600-800$ month. I do not deduct this from my taxes and she does not claim it. She is retired, on fixed income. Will I need to show receipts of paying to her and does she need to show that she files taxes? I don't even know if she is supposed to. Thanks looking at filing ch 7 as work is lowering hours soon.
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We were in the exact same situation, my mother had requested at one point we pay her cash (ATM withdrawal), our attorney's advice was to start paying her with a check again, which we did for the 5 months prior to filing. The last month before we filed we started sending them to a different place. We haven't had our 341 so I don't know if it will even come up.
I don't think it will be an issue, let's see what others say. -
Whether your mother files includes the payment as income on her taxes is irrelevant to YOUR BK. However, if you are going to list the childcare payment as an expense in your bankruptcy, you should be prepared with some documentation, especially since the payment is made to a relative.Comment
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