I think they are incorrect to try and claim the childcare credit for your services----the logic of having to sleep in order to be able to work is flawed------all new parents wish they could get a full night of sleep so they will not be tired when they are trying to work. But----from your standpoint....you will be reporting your income on your own tax return anyway. If they enter the amount they pay you and say that it was for childcare---then they are the ones who might be subject to scrutiny by the IRS. If the amount you enter on your tax return matches the amount they say they paid you, you have met your own requirement to report your income. They can take their chances with the IRS. As long as you prepare your own return correctly, what the parents do on their tax return is in the category of not your problem. They are not paying you to be a tax advisor.
**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.**
