This is very helpful. I am in the same situation; however, my parents, though retired, do have additional income other than Social Security (e.g. dividend income, pension, etc). How should they report this income if they are independent contractors (i.e. watch my child at their home) and how will it be taxed (i.e. as ordinary income or as self-employment tax?). Any info you can give me about this is greatly appreciated!
