A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

amanda-sanford · ‎February 12, 2020

TomK100 · ‎February 12, 2020

Babysitting income is self-employment income and should be included on your tax return. The IRS requires you to file if you had at least $400 in net earnings from self-employment (income minus expenses).

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amanda-sanford · ‎February 12, 2020

It's under $400 so she doesn't need to claim it right? I'm asking because she already filed with her husband (her $0 income and his income from his job) and I get $50 from my child care tax credit if I include it in my list of childcare expenses but I don't want her to get audited if I put her down and she hasn't claimed the income.

LeonardS · ‎February 12, 2020

No, the IRS requires that all income individual receives is reported on their tax return. The $400 you refer to is the limit under which a self-employed individual does not have to file self-employment taxes. Your friend has to report her income from babysitting on her tax return.

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A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

Deductions & credits

Deductions & credits

Deductions & credits