There is not a limit of providers you report that you paid to claim the credit. But any individual you paid would be expected to claim their income on their tax return. You should give any person you paid more than $600 a 1099 form. But they do not need that form to claim their self-employment income. The income would be included on their personal tax return if they are required to file a tax return.
If you pay them to watch your children, that is considered self-employment income to them and it has to be included on their tax return, especially if you are going to use those payments as a tax credit on your tax return.
Do I need to file a federal return this year? Thoe you paid can use this chart to see if they are required to file. If they are, they must include all of their income, including what you paid to them for childcare.
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