@stech You are past "full retirement age" so your Social Security benefit amount cannot be reduced by the babysitting income. You have not explained whether you will babysit in your own home or the home of your grandchild. It does make a difference as to how the income is reported so please clarify that for us.
If you are going to babysit in YOUR own home, you are receiving self-employment income which must be reported as self-employment income. You will pay self-employment tax, and might need to pay estimated quarterly payments for that income. If you babysit in your grandchild's home, then you can be a W-2 employee and they can report your income on a W-2 and call you a household employee. But since you are the child's grandparent there is an exception made and they do not have to withhold FICA from your wages. However they should withhold ordinary federal (and maybe state) income tax from your pay.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
