In-laws and Taxes

Who pays for their food, clothes, necessities? That's who should claim them. Perhaps you need to start paying the grandparents for their services so that they don't feel you're taking advantage.

I don't think they can legally claim either of the children on their taxes as they are not living with the grandparents. They are providing daycare services for their grandchildren. Do you pay them for their services? If not then perhaps suggest paying them. They would then have to claim that income on their taxes but unless they are licensed you can not deduct that expense. At least that's how I understand it to be. Honestly it sounds as if they are providing before and aftercare which if most schools offer for about $50 per month per child.(at least that's the going rate around here.)

They have to live w/them on a full time basis half of the year. They probably can't claim them, but if you are not giving them gas money and babysitting money, groceries, etc. for the times they stay over there, then they might be feeling a little taken for granted.

What? They're a daycare, essentially. If you hired a nanny, she wouldn't claim a child as a dependent on her taxes. It sounds really fishy to me. They are the grandparents, not the parents. Do they think the girls are "theirs"?

I would also run the girls' credit and/or make sure that none of their info is being used inappropriately. If you file and they file and use one as a dependent, the IRS will kick it back.

No. You are the parents. If they want payment than you should pay them cash and than claim it as child care expenses on your taxes, but they have no right to claim one of your children.

Geez going by their criteria my daycare provider could claim my kiddo.

NO, they didn't give birth to them. They watch them a lot but that does not constitute them using the girl(s) for tax purposes.

Check with IRS about this or a tax accountant. Grandparents are just that grandparents not guardians.

Sorry.

The other S.

UPDATED: G., no one here knows the relationship you have with your in-laws. It is out of place to state that you are taking advantage of your in-laws. I hope that you can all find a mutual agreement WRT this situation and that you can all continue to benefit from the support you get from this arrangement.

They have to prove that they support them financially 51%, not that they spend 51% of their time with them. If that was the case then most daycare centers could start claiming kids entrusted to their care.

So NO, they should not be able to claim them as a dependent if all they are doing is acting as a part-time child care provider.

NO way.

They are YOUR 'dependents." Not theirs.

Make sure, they do NOT do this.
Or one of you will get audited....

NEVER EVER EVER..... give them your child's social security numbers, either. Otherwise...they could, claim them on their taxes, without you knowing....
AND do other things, financially....
they do not sound... real.... honest?

I am getting close to retirement (within the next year). I love my grandchildren dearly; however, I don't want to spend the rest of my retirement years raising more children. I want to spend time with them, but I don't want to be tied down every day. If these grandparents are keeping the children every day, taking them to school and picking them up, that is a lot of time and expense (with gas prices being so high). I don't think they ought to be able to claim them on their income taxes, but I would hope that you and your husband do something for them as well. They are taking a big burden off your shoulders. My son and daughter in law spend $800 a month on child care. Maybe you should think about putting the children somewhere else part of the year so that they can have some time to take a trip or do something else they enjoy. I would suggest that you and your husband talk to his parents and find out what is really behind this request. If you have a good relationship with them, don't ruin it over something like this. May God grant you both the ability to look at this objectively and lovingly.

Do they pay for their health care, their clothing, school supplies, bedding, shoes, and all the other stuff that goes into raising a child. They are spending some gas money, and most likely food. If they are going to go there, I would offer to pay them for their services. If they do not accept, I would look for a daycare that provides transportation to and from school, to prevent any further problems.
I vote no. Not unless they want to start paying for everything that goes into raising your children. There is obviously some underlying issues though that need to be addressed. I would see about getting those issues out into the open.

WOW! Was he joking?

No! Would be my answer. These are YOUR children. I would just tell your in-laws that you cannot do that, even if you have to tell them it is against the law.

Umm..I don't think so. The children do not reside ..actually live with them more than 6 months of the year, right? If my husband asked me that, I'd say no..with no hesitations.

No! I'm hoping grandpa asked the question in sincere ignorance of the law, and not in an attempt to squeeze some tax benefits when they know it's dodgy. Your gut is right, don't do this.

Tell them sweetly that both the Internal Revenue Service and the state tax office would frown on that -- and believe me, sooner or later, the IRS would find out your child was being claimed by them, and both the grandparents and you would have some serious explaining to do. Like....where that "dependent child" suddenly came from at their age.

no... as Grandparents you cannot claim a grandchild unless you are the custodian guardian. PERIOD.

My Dad paid $7000 towards my daughter's private school tuition - and cannot claim that HUGE gift because he's not her parent.

Maybe this is their way of telling you that your kids spend too much time at their house and you as the parents don't spend enough time with your own kids... Something to think about.

WHAT!? Is that a joke? Their babysitters during the week and grandparents on the weekend. I'd tell HELL NO! That just seems absolutely absurd to me. I can't begin to even describe how ridiculous that is.

No, that would be illegal. Just call an accountant and tell the parents the accountant said it would be illegal since they are not their legal guardians. You need that tax break on your refund.

hi there ... a lot of the answers are around the audacity of your in laws request. But lets consider why they would ask ... how much time do the girls spend with them and do you have an agreement with them. Perhaps its time to look outside the family for child care support. Consider 1. they need a tax break and were looking for an uninformed loophole 2. they are greedy or 3. they feel they are being taken advantage of

I am in disbelief your husband would ask your thoughts ... its a clear NO

NO! They can't claim them. Thats crazy~ and selfish. Just because they help out doesn't mean they should claim them. If they lived with them exclusively and provided all of their food, shelter and care--then yes- but in your situation, no.

M

I say no. They are your kids and although the inlaws "babysit" and sometimes keep them over night/weekend they are not the primary caregivers and therefore are not their dependent. Can't believe they would ask!

Uh-no!
I would maybe offer to pay them for their services and they could pay taxes on that and YOU could claim that on your taxes.
That is just odd to me. They arent their children.

I don't think this would be legal unless ya'll actually all live together.

It sounds like you guys have a pretty good relationship (from this question), so it most likely would be fine to just say that.

For what it's worth, after I left for college, my Mom and I used to decide whether she'd claim me on her taxes or I'd get the deduction depending on who got more. We were pretty tied together financially - she'd help me, I'd help her, so it made sense to us. If she was a huge help to me and my family & asked this, I'd assume it was just a family kind of question - not something presumptuous.

Clearly, they cannot claim them on their taxreturns- even if they DO sleep over.
Perhaps they would like to pay for their clothing and health insurance as well, just to name a few.......

NO. There is no bases for them to claim your child on the taxreturn. Tell them no. Period.

Last time I checked nobody's babysitter can claim the kids the watch on their taxes, and it doesn't matter if they get paid or not. It doesn't matter if they spend alot of time with them or not, that's an advantage to being a grandparent, you get to spend time with your grandkids. For me there would be nothing to think about. No.

I don't think that is legal, but because you have to depend on them greatly for going beyond typical grandparent duties (not for the weekend visits, but for the driving to/from school and after school care not occasionally but every day), I would consider paying them. Consider their situation--my parents would probably not ask (nor take) money from me, but they are quite a bit more well off financially than we are; paying for a lot of extra gas, food, etc., would not be a big deal. My in-laws are not. If they were helping us in that way, I would pay them.

If you live in the state of Texas, I know the person(s) who gets to claim any children is the one who spends at least 51% of their time with them. If your in-laws can prove that they have them at least 51% of the time, then they have a legal right to claim them. I don't know what the laws are in New Mexico, where I see you are from.

i think you are taking advantage of your inlaws by not repaying there investment of TIME with the grandkids. im sure theres not a daycare in the world that would do all this running around with them for free and when the mil gets older and not able to be of service to you are you going to provide free time and transportation for them. yes definitely you are taking advantage of her. pray about offering compensation and even gift cards to a department store or restaurant would show that you appreciate the time you have to yourself because they are relieving you of your job and no they shouldnt have to claim the precious girls you gave birth to on their taxes.

Updated

i think you are taking advantage of your inlaws by not repaying there investment of TIME with the grandkids. im sure theres not a daycare in the world that would do all this running around with them for free and when the mil gets older and not able to be of service to you are you going to provide free time and transportation for them. yes definitely you are taking advantage of her. pray about offering compensation and even gift cards to a department store or restaurant would show that you appreciate the time you have to yourself because they are relieving you of your job and no they shouldnt have to claim the precious girls you gave birth to on their taxes.

First of all, this is their GRANDPARENTS and that's what grandparents do. They don't get to claim them on their income taxes for doing what they should be doing. Now, if they just need help and you all agree to allow them to carry one of the children, well, that's a different thing entirely but it does not ENTITLE them to be able to carry them. I don't know how much you all get back on your return but maybe, you might consider giving them a thousand dollars or some agreed upon amount. In their defense, they ARE saving you a considerable amount of money by helping as much as they do and I feel that you SHOULD give them some compensation.

Um no, I believe the children actually have to LIVE with you in order to claim them. So just because they help out a lot and take care of them a lot does not give them the right to claim them on their taxes.

I would maybe pay them a fair rate for taking care of the kids, and they can claim that on their income taxes, however you and your husband are still the financial providers of your children and I assume pay for over half of their expenses therefor it would be you that claims them on your taxes. The only way the grandparents would be able to claim them is if THEY provide over half of the children's expenses.

No. Don't let the claim the children because they're not entitled to do so. Just think if you're audited down the road when you decide to "reclaim" your dependents.

Also, I agree they are helping tremendously. If they want to be compensated they should just revisit the arrangement with you and your husband and come to an agreement and an understanding.

Also, perhaps you guys should just offer compensation period by saying something along the lines like: I'm not sure why you want to claim them but we discussed compensating you for your support.

Also, as has been said, cut back on the time your children spend with them. It's probably not fun anymore which could be the main reason they want money.

Illegal and no! Their tax person will also tell them that, if they use a real one.

They ask yall for to much, so say no your bff M.

hell to the NAAA!!! thats not fair for ya'll. You support your own family, and when tax seasons come around why do they get the extra money that it takes for you two to support those babies!!
its just weekends that they stay with them....not months on end!!!

It sounds like they are politely or jokingly asking for a little compensation. Tell them you wouldn't want to get in trouble with the IRS, but I would ask what they think would be a fair compensation plan. Also, cut back on the weekends. What might have been fun in the beginning might be getting old or tiring for them.