Yes it does mean the babysitter should be reporting the income on her own return. Whether she does so or not is not your responsibility. You report the childcare expense along with her tax ID or SSN in order to claim the childcare credit, and make sure the childcare provider knows you have reported the expense and the amount reported.
**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.**
