{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Worksheet_Three - income to support themselves without...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Tax Research Worksheet #3 Fall 2010 Due: September 22, 2010 S c h m i t t 1 5 p o i n t s Sarah is a single parent who is enrolled in a state-sponsored program that pays the childcare costs for her young son so she can be employed outside of the home. Under the program, Sarah gets to pick her childcare provider and payments are made by the state directly to that provider. Sarah chose her parents, Kim and Jim, as the childcare providers. Thus, Sarah’s parents were paid $12,000 for the year to care for their grandchild. Kim and Jim are retirees who have sufficient
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: income to support themselves without these childcare payments. Kim and Jim have come to you with the following questions: 1) Do they have to include these payments in their income? 2) If the answer to #1 is yes, do they also have to pay self-employment tax on these payments? Required: Research this issue and write a properly formatted file memo and a letter to the client reporting your findings....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online