In 2022, I babysat my grandchild full time (January through December) in my daughter's home, for which she paid me just under $6000. I did not work elsewhere. I am not interested in earning social security benefits. My husband is retired and receives social security. We file our taxes jointly.
My daughter and her ex-husband divorced mid-year (August 2022). She has full custody and receives monthly child support from her ex-husband. (One factor determining the amount of child support that she receives is based on the fact that she does pay for childcare.)
Given our situation, I have several questions based on 2 different scenarios:
Scenario #1:
If my daughter does not claim the Child and Dependant Care Credit, can I consider what she pays me as a "gift" and, therefore, not have to declare it as income on my taxes? OR
Scenario #2:
If my daugter does claim the Child and Dependant Care Credit,
a) how does my daughter classify me as caregiver when filing her taxes on and what forms does she need to supply me with? AND
b) how do I classify myself (ie "self-employed" or "household employee") and declare the income when filing my and my husband's taxes on Turbotax?
Lastly, will the Deluxe Federal and State version of Turbotax be sufficient given our situation, or do you recommend another?
