You mother would need to report this as self employment income. If she is using premier, she will need to upgrade to TurboTax Home and Business to include it as business income. Child Care income is considered as self-employment income by the IRS and should be reported on Schedule C. In addition, you should report any expenses related to your Child Care business on your Schedule C. In addition to regular income tax, she would would be liable for self-employment tax on the net income. This is 15.3% and covers social security tax and Medicare tax on net self-employment income. The additional self employment tax is calculated and added to her return in TurboTax.
