Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
Q: Is it mandatory that you give a babysitter's Social Security number if you want to file a tax credit for child care?
A: Yes. No credit can be claimed unless the taxpayer reports the correct name, address and taxpayer identification number of the dependent care provider. If the babysitter does not comply with a request for the information, you should furnish whatever information is available and include a statement that the other required information was requested but wasn't given.
RTC Q: Do I have to pay tax on an insurance policy that I collect on the death of a partner of my husband in his business? My husband and his partner had an insurance policy on each other.
A: No. Gross income does not include amounts received under a qualifying life insurance contract if such amounts are paid because of the insured's death.
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
Pub Date: 4/12/97