Q. She can still report her income as "other misc income". In this case, can she still pay medicare tax (she is trying to get medicare later)?
A. No. If she wants medicare credit, she will have to file as self employed. That is allowed. But she will have to pay about 14% as self employment tax (SET), in addition to any income tax. SET is how the self employed pay their social security and medicare tax. Paying just the medicare portion is not an option.
Q. Also do I need to report these expense through my tax?
A. Generally no. If you are claiming the dependent care credit, you do need to report what you paid and who you paid it to.
