Taxpayer asks:
My childcare provider says that she doesn’t know her TIN? but she has her state G.E. tax license number. She doesn’t want to give me her social security number, which is understandable, but I do want credit for this expense. What can I, or should I, do?
When I plugged in the number with H&R block it wouldn’t take it…but Turbo Tax did…but I’d rather file with H&R, because it’s cheaper.
Taxgirl says:
I hate that my cynical-meter went up – but it did.
My gut is that your childcare provider does not wish to give you her tax info because she may not be reporting all of the income. Just a hunch.
If you leave the TIN out, your credit could be disallowed unless you can show you used “due diligence” to get it. The best way to prove this is to ask your child care provider to complete a form W-10. You can download the form W-10 as a pdf here (note that it’s not in the list of forms on IRS website, I think that’s an oversight).
As a heads up, a childcare provider who refuses to furnish a TIN can be fined $50 for each instance. Clearly, if there’s a fine, the provider is likely to be angry at you. One of my friends had a provider who flat out told her that she would not allow my friend to claim the expenses on her taxes because she would not claim it on her taxes – that’s really unfair. If someone is willing to play those kind of games with you, why do you believe that he or she is looking out for the best interest of your child? This is why I highly recommend that you use someone who will comply and not make things difficult.
You can read more about child care expenses here.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl!
Taxpayer asks:
¿Cómo puedo obtener un ITIN?
(How can I get an ITIN?)
Taxgirl says:
Since I get a lot of variations on a theme of this question (SSN/EIN/ITIN), I will answer a bunch of them at one time:
To get a SSN (Social Security Number), you will need to complete Form SS-5, Application for a Social Security Card (available online or by calling 1.800.772.1213). You also must submit evidence of your identity, age and US citizenship or lawful alien status.
An EIN (Employer Identification Number) is also known as a federal tax identification number and is used to identify a business entity. To get an EIN, you will need to complete form SS-4 (you can apply online).
IRS issues ITINs (Individual Taxpayer Identification Numbers) to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. An ITIN is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a SSN. An ITIN is a 9-digit number, beginning with the number “9″, formatted like an SSN. To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. You will have to show proof of foreign/alien status.
If you have questions about which number is most appropriate for you, contact your tax professional. If you cannot afford legal or accounting services, do not ignore the ITIN requirement – you may be missing out on tax or other benefits that you would be entitled to receive. Contact legal services in your town or county – you might be eligible for free legal aid.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the Taxgirl!
Taxpayer asks:
Can you please tell me what I should do if the independent contractor has not provided me with his TIN or EIN number? Should I send in the 1099 without a number?
Taxgirl says:
This is probably one of those answers that I’ll get flak for but I’m giving you my opinion anyway…
The official rules say to send it on without the TIN or EIN. This is, of course, after you’ve made a good faith effort to get the information.
I usually write “REFUSED” in the space where the TIN or EIN would go. I do this so that the IRS is on notice that I didn’t forget – I just couldn’t get the number. “REFUSED” feels loaded and has the potential to tick folks off. But I look at it this way: the rules are what they are. And if I ask and you don’t tell me, the burden should shift to you, not me. So there you go.
It is worth noting that there may be penalties to the payor for not submitting a proper TIN or EIN. There are also penalties for not providing your own TIN or EIN to a payor. So it’s important to make an effort to fill out the proper paperwork.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the Taxgirl!
