If they had your child babysit so they could work then they are using the childcare credit on their tax return, and yes, your daughter will have to report it on a tax return of her own. I would not give them her SSN. Get her a Tax ID instead:
https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin
MY DEPENDENT HAD A JOB
If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return. He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return. (Supervise this closely or prepare it for him!)
If your dependent’s earnings were over $400 paid in cash or were reported on a 1099Misc or 1099NEC then she must file a return and pay self-employment tax for Social Security and Medicare.
You might also want to use free software from the IRS Free File versions:
https://apps.irs.gov/app/freeFile/
**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.**
