Laura1159
New Member

grandmother babysits in daughter's home

Grandma goes to her daughter's home to babysit - she does not live there.  Daughter pays her $300 per week.

From what I read in various places, grandma reports this money under other income and daughter can claim

the daycare credit?  Does mom have to pay both shares of fica cuz she is considered self-employed?

That is the part that is very confusing.  Grandma also gets earned income credit for her disabled son

that lives with her.  Does this income she gets from her daughter for watching the grandchild count

as income for Grandma's tax return so she will still quality for earned income credit for her disabled son?

Grandma also previously qualified for free health care because she was low income.  Will she just 

have her daughter write a letter about how much she pays her every week in order to determine

whether she is allowed to still keep her free health care?  I have tried to ask the IRS these questions,

and they just read the sentences in the publications that I read myself.  

Thank you for any help if anyone knows these answers.