Report the amount they are claiming, for the child care deduction, as self employment income*.
You will need to up grade to TurboTax Self Employment**
*This assumes you baby sat in your home, not theirs.
**There is a work around in TT Deluxe. Enter the income at the 1099-Misc screen, even though you didn't get a 1099. When asked why you got the 1099-Misc, select “Freelancer". TurboTax will prepare schedule C-EZ, instead of schedule C
