If you enter the childcare credit you have to provide the Social Security number or Tax ID of the babysitter. The babysitter is responsible for reporting that income on her own tax return. The IRS matches that information up.
Babysitter will pay self-employment tax forSocial Security and Medicare on the income as well as ordinary income tax depending on how much she earned.
You have not mentioned where the babysitting occurs. If the sitter comes to your home and you have paid over $2300 in 2021 you were supposed to treat her like a household employee and withhold SS and Medicare. If she babysits in her own home or somewhere else, she is just self-employed.
https://ttlc.intuit.com/community/tax-topics/help/who-is-considered-a-household-employee/00/26770
https://ttlc.intuit.com/community/tax-payments/help/do-i-have-to-pay-taxes-on-what-i-pay-to-my-house...
**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.**
