Social Security Number or Identification Number

Because of the growing problem of identity theft I strongly recommend that all Home-Based Family Childcare Providers get their own Tax Identification Number (EIN) and use it instead of giving out their Social Security Number.

In less than 15 minutes you can go to the IRS Web site (www.irs.gov/businesses/small/article/0,,id=98350,00.html ) and apply ONLINE for your Tax Identification Number. Or you could contact the IRS at 1-800-829-1040 and request Form SS-4 and apply by mail. Or you can call 1-800-829-4933 and file the Form by phone.

A few tips on applying for the number:

1. Enter your social security number as a Sole Proprietor in question 8a.

2. Put "December" as your closing month in question 11.

3. Leave question 12 blank unless you have, or plan to hire, employees.

4. Check off "Other" in question 14 and enter "Family Childcare".

5. Leave question 15 blank.

6. Question number 9 ("Reason for applying") requires particular attention. If you have employees, check "hired employees" box. Otherwise, check the "Other" box and enter the words "identity theft" in the blank space. Tip - If you check any box other than "Other," the IRS will assume that you have employees and will start sending your quarterly payroll forms to fill out.

Once you have an EIN number, provide it to the parents and on your Schedule C and Schedule SE. On all other forms, including Form 1040 and Form 1040ES, use your social security number.

It's alright to give out your new identification number to the parents that may already have your social security number, just explain to them that they should use this new number now.