Hey gam, what came first the chicken or the egg? So grandma will need to be paid via w2 for babysitting and pay taxes in your scenario just as I said earlier. Now if she is a senior on SSI instead of regular retirement, that can blow up on her quick. You are not considering all the eventualities. I'm not ganging up. You asked for proof on declaring rental income, I provided it. I mentioned this earlier before you jumped in. There are tax consequences no matter what happens here. The IRS has their hands in everyone's pockets. As LdIj pointed out that way might work good for mom and bad for grandma.
Sorry didn't finish my other post and accidently hit send, I was trying to edit it, but I was logged off and you already posted. Thought if you were in the middle of editing no one could read your post but I guess not. I'm not even going to finish it because I didn't find anything in your links to prove what I was saying as wrong. I was not talking about bartering, I set that off the table.
Hey warrior the chicken came first duh! It might, but it might not, seriously how do you know it will? I am considering all the eventualities your not as well as others.
Since I didn't finish that last post, I don't see your proof on rental income that applies to this. Of course there are tax consequences, I never said different and I have said several times that mom and grandma need to follow the IRS rules. But since they do, bartering is now out of it, so is rent, cause grandma does not pay rent and that is easy to fix to have grandma pay a share of bills around the house without actually charging her rent. Mom said to begin with she is picking up some slack for her own mother, she is allowed to do that.
I only see LdIj pointing out where it would be good for mom, but I could have missed the other. I'll go back and look.
My point is this, no bartering if mom wants to take this to court. She pays grandma for childcare, and follows IRS rules on claiming it and paying taxes associated with it. Rent is not in this at all, grandma lives in her home, no rent is exchanged. I'm also saying it's not as bad as ones are making out and that mom needs to go check it herself and figure it out, cause I have a 50/50 shot of being right, same as you cause we don't know what grandma makes, or mom and how it will affect them.
While I was responding you edited your post and added on. On that added on part I have no clue to who mentioned this Affidavit of Support, I will go look through the thread though. Nor am I sure what your talking about the 125% of poverty level, but I will go look and see if either applies to anything I said, most likely not, because you have no clue to what I have said in this thread, lol. So perhaps you should go back and read all my posts.