As Champ Carl pointed out, you are supposed to report self-employment income over $400 and pay self-employment tax on that income for Social Security and Medicare. You can also put your business expenses on a Schedule C and the amount of SE tax you owe may be reduced. You say you are raising your grandchild. Although you are over 65 you may be able to get EIC with a dependent child. Enter the self employment income and the information about your grandchild to see how it comes out.
And there is another question--have you sought any added Social Security benefits based on having that dependent child? If you have not done that, you should contact Social Security. Your post does not mention why you have your grandchild. If she is not receiving survivor benefits then you may be able to get an increased amount of SS while she is your dependent. It is worth exploring with SS.
**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.**
