grandparents as nanny = lower taxable income?

[nycguy567]

i heard somewhere that parents pay the grandparents for their nanny service, as opposed to doing it for free, and as a result there is a lower taxable income for the parent. can anyone shed light on the tax law/statute or did i hear wrong?

[Seeker]

i heard somewhere that parents pay the grandparents for their nanny service, as opposed to doing it for free, and as a result there is a lower taxable income for the parent. can anyone shed light on the tax law/statute or did i hear wrong?

Were you in the UK ?

Found this: Parents to get tax break for paying nannies - Telegraph

I'm not sure that any such law/statute exists in the US and would be surprised to learn otherwise.

[moneybags]

If you paid them via a flex spending plan, you would not be taxed on the money that went through the plan. The grandparents would be taxed on the amount paid, as income.

[xpirtdesign]

Great advice moneybags i needed that information also thanks