This whole thread didn't answer my question and I believe you are giving incorrect advice (Turbotax competitors are giving the opposite advice which makes me confused). my main question was does my mom pay self employment tax. I am not trying to be combative i just want an actual answer to the question instead of someone telling me "i am beating a dead horse".
my understanding is - self employment definition applies to:
- She’s in the business of providing childcare.
- She depends on the income.
- She puts time and effort into the activity — This shows that she intends to make it profitable.
1) She is not in the business of providing child care
2) She does not depend on the income
3) She does not have a profit motive since it's her grandchild.
Therefore self employment tax does not apply.
Is the above correct? - if not, why not.
