Have a rather odd situation:
My daughter paid me less than $2200 in 2019 for babysitting my grandchild. She had not realized that she could claim the dependent childcare credit if her spouse had no earned income, so she had an FSA account from which I was paid. So, she will be completing form 2441 with my SSN given as child care provider, but she won't be allowed to take the deduction on her taxes.
I understand that I am not subject to the nanny tax, but my question is whether or not I would need to report this as income since they won't be allowed to take the tax deducton.
