To get a tax break for a babysitter, you need to report the babysitter's name, address, and social security number on your tax return on a Form 2441.

If the babysitter doesn't want to report her income, you can't report her income on your tax return, and will not get a tax break.

If you pay her more than $1,400 (in 2005 increased to $1,500 in 2006) this year, the rules require that you treat her as a domestic employee, and social security taxes are due on her wages at a rate of 15.3%.

Finally, it's one thing to pay someone under the table so they don't pay taxes. Paying someone under the table so they don't lose out on an entitlement program is something I completely disagree with. There is a reason the government puts income limitations in connection with these entitlement programs (which you and I pay for through our taxes), and personally, I would never knowingly or willingly help someone get around the rules. (I guess you hit one of my hot buttons!!)

Zip Code: aschwartz@mdtaxes.com

You may want to reconsider paying taxes on your babysitter if applicable. I know that a lot of people pay their household help under the table. However, I have a friend who got burned. She and her nanny had a big dispute over an issue that led to a firing (the nanny was in the wrong and needed to be terminated). My friend paid her under the table for almost seven years. The nanny turned her in by filling for unemployment. My friend owes taxes for seven years and penalties. It just is not worth it.

Zip Code: dr_ericmiller@yahoo.com

I've have also seen it many times where an employee wants you to help them beat the system, and then they are the first ones to turn you in to a government agency when things don't go their way.

It's no different from the saying that you never want to do business with someone who cheats in golf.

Zip Code: cpa@mdtaxes.com