As @xmasbaby0 states the income does need to be reported by your mother for you to take the credit. However, she may not have to pay self-employment taxes on it.
You can exclude wages paid to your parent who is babysitting your child from social security/medicare/unemployment taxes.
There are exceptions to this exception. See below for an extract from Publication 926. If you are able to exclude the income from self-employment taxes and therefore do not need a schedule H or a W2 issued, your mother should enter the income on her return as follows:
On the "Wages & Income" tab
- Scroll down to "Less Common Income"
- "Show More"
- "Start/Revisit" Miscellaneous Income"
- "Start/Revisit" "Other Income not reported on W2..."
- Did you receive other wages?" "Yes"
- Put in the amount
- Continue
- "NO"
Wages not counted. Don't count wages you pay to any of the following individuals as social security or Medicare wages, even if these wages are $2,300 or more during the year.
1. Your spouse.
2. Your child who is under the age of 21.
3. Your parent.
Exception: Count these wages if both the following conditions apply.
a. Your parent cares for your child (including an adopted child or stepchild) who is either of the following.
i. Under the age of 18.
ii. Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in the calendar quarter services were performed.
b. Your marital status is one of the following.
i. You’re divorced and haven't remarried.
ii. You’re a widow or widower.
iii. You’re living with a spouse whose physical or mental condition prevents him or her from caring for your child for at least 4 continuous weeks in the calendar quarter services were performed.
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