Yes, you most likely will qualify for the EIC credit - since you have earned income and I'm assuming your children are your qualifying dependents. Babysitting income is considered earned income for the EIC tax purposes. The credit will be determined based on your earned income amount and qualifying children.
Your babysitting income is considered
self-employment income and should be reported as such. Here is data entry:
- Federal Taxes
- Wages and Income
- Self-Employment, Select Income and
Expenses - follow the interview
questions; you would report the income as if you own a business; you will
be able to enter your income and expenses (if applicable).
Note: you may be asked to
upgrade to a higher version of TurboTax.
