In order for you to claim the childcare credit you have to enter the Social Security number or Tax ID of your childcare provider. The IRS matches that up with the income reported by the childcare provider, so yes, Mom has to report it. It will be self-employment income for her and she will pay some self-employment tax on it for Social Security and Medicare. It should have no effect on her SS benefits.
She might want to use one of the free software programs offered on the IRS site:
https://apps.irs.gov/app/freeFile/
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
