Daycare Provider Refusing to Provide SSN for Tax Deduction & Misrepresenting Payments Received

Yes, you can still claim the Child and Dependent Care Credit even if your provider refuses to give you their SSN. The IRS has a process for this exact situation because unfortunately, it happens more often than you'd think. First, you should make one more attempt in writing (email or text) requesting their tax ID number and explaining that you need it for your tax filing. Save this communication as proof of your attempt. If they still refuse, you can file Form 2441 (Child and Dependent Care Expenses) and write "REFUSED" in the space where you would normally put the provider's tax ID number. Include all the information you do have - their name, address, and the amount you actually paid ($19,500 based on your records). Make sure you have documentation of all payments (your Venmo and bank records) in case the IRS requests verification. Be aware that filing with "REFUSED" will likely flag your return for additional review, and the IRS may send a notice to the provider about their obligation to report income. They might face penalties for not providing you with their information.

I had this exact same problem last year and ended up using taxr.ai to help me document everything properly. The site at https://taxr.ai helped me organize all my payment evidence (I also had Venmo and some cash payments) and created a well-documented case file that I could use when filing with "REFUSED" in the SSN field. What's great is they actually helped me understand exactly what records I needed to keep and how to present the evidence if the IRS requested further documentation. They analyzed all my screenshots and payment history and created a complete transcript of my payment history that satisfied the IRS when they did eventually ask for verification (which they did, about 2 months after I filed).

I was really skeptical about using taxr.ai like I mentioned in my comment, but I decided to give it a try after struggling to organize all my childcare payment evidence myself. I'm actually shocked at how helpful it was! I uploaded my bank statements and Venmo history, and they helped me create a complete payment record that looked really professional. They even flagged a couple transactions I had forgotten were for babysitting rather than regular daycare. The documentation they helped me create made filing with "REFUSED" in the provider field much less stressful. When the IRS did send me a letter (about 6 weeks after filing), I was totally prepared with the evidence packet taxr.ai had helped me organize. Honestly saved me hours of stress trying to put everything together myself while dealing with a frustrating provider.

Been there with a nanny who refused to provide her SSN. After multiple failed attempts to reach the IRS for guidance (spent literally HOURS on hold), I finally found Claimyr at https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent in under 45 minutes when I'd been trying for weeks. The agent confirmed exactly what I needed to do to properly document my childcare expenses without the provider's SSN, and gave me specific guidance on what evidence to maintain in case of review. They also told me about Form 14157 (Complaint: Tax Return Preparer) which I could use to report the provider for refusing to provide information. Having that direct conversation with an IRS agent made me so much more confident in how I was handling the situation, rather than just guessing based on internet advice.

OK I need to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it myself because I was also dealing with a childcare provider issue (mine gave me an SSN that kept getting rejected as invalid). I was 100% convinced it wouldn't work, but I was desperate after spending about 9 hours total on hold with the IRS over several attempts. Claimyr actually got me connected to an IRS representative in about 37 minutes. The agent confirmed my suspicion that my provider had given me an incorrect SSN, and walked me through exactly how to document everything and file with "REFUSED" since I had made reasonable attempts to get the correct information. The guidance I got from actually speaking to someone at the IRS was way more helpful than anything I found online. I'm still shocked this service actually delivered what it promised.

Something similar happened to my sister. Her daycare provider was clearly trying to under-report income to avoid taxes. She ended up filing Form 3949-A (Information Referral) to report the provider for tax fraud. Not sure what happened after that, but she did get her tax credit by writing "REFUSED" on Form 2441. Just make sure you have those receipts organized and easily accessible in case you get audited. Screenshot all your Venmo transactions too, since they only stay in your history for a limited time.

Have you checked to see if your provider is actually licensed? In my state, licensed providers have to give you their tax info. If they're unlicensed, you might want to report them to your state childcare licensing agency too, not just the IRS. Unlicensed providers can be a serious safety concern.