in-home babysitting and FSA

[La Bibliotecaria Feroz]

So I have an FSA and and odd work schedule. My two kids have a total of three different schools and I also need someone to come to the house for a few hours a week.

Has anyone has success using an FSA in that kind of situation? The sitter would have to be willing to sign a tax receipt. Is that a reasonable request? Would I have to make them my employee in that situation? I'm not going to be able to use up all my FSA dollars if I do not use it for the sitter.

[ShoulderThingThatGoesUp]

We paid my mother-in-law to watch our daughter for some days that my wife had to go into the office (normally she is PT from home). FSA accepted it without comment. Haven't done our 2014 taxes yet but I don't think it'll be a problem.

[yoga mama]

I have also had my mom sign the FSA form once for some babysitting she did.  It was never questioned.  However I think that personally, if I were going to do this on a regular basis, I'd be more comfortable with everything being reported, I think that would mean you'd have to give the sitter a 1099 and report the income?  Very good chance it would never be investigated buuuuuuut you never know and I'm definitely too much of a rule follower.  I have mostly used the FSA for preschool so don't know for sure.  Sorry I can't be more help.