https://ttlc.intuit.com/community/tax-credits-deductions/discussion/my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on-tax/01/2856118#M273970 Mon, 23 Feb 2026 13:29:09 GMT miriam2880 2026-02-23T13:29:09Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on-tax/01/2856118#M273970 Mon, 23 Feb 2026 13:29:09 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on-tax/01/2856118#M273970 miriam2880 2026-02-23T13:29:09Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on/01/2856188#M273974 <P>Yes. &nbsp;If you are paying her to take care of your children then she must report this as self employment income, or you might be considered her employer if she does it in your home. &nbsp;</P> <P>&nbsp;</P> <P>She will have self employment taxes on this income but it's not likely her social security will become taxable unless she is married and files jointly with her spouse.</P> <P>&nbsp;</P> <P>If it is a gift from you to her there is nothing to report for either of you. This would mean you would not be entitled to the child care credit.</P> Fri, 03 Feb 2023 18:21:20 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on/01/2856188#M273974 DianeW777 2023-02-03T18:21:20Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on-tax/01/2856355#M273984 <P>Q. if I claim the dependent care credit (DCC), on my tax return, will that affect her?</P> <P>A. Maybe.&nbsp;&nbsp;</P> <P>&nbsp;</P> <P>If you claim a tax benefit (e.g. DCC), then she must claim the income. But, it may still not be enough to trigger a tax liability.&nbsp; It depends on whether, she baby sits in you home or hers.&nbsp; if she sits in your home, she is a household employee, and as a grandparent, exempt from social security and Medicare tax.&nbsp; If the $5200 is her only income, other than social security, she will pay no tax.&nbsp; But, she should file, so her income matches your deduction (actually, tax credit).&nbsp;</P> <P>&nbsp;</P> <P>If she sits in her home, she may be considered self employed and subject to&nbsp; security and Medicare tax (reported as " security and Medicare tax", about 15% of the $5200).&nbsp; &nbsp;Some, in this forum, argue that it can be reported as hobby income and not subject to&nbsp; security and Medicare tax.</P> Fri, 03 Feb 2023 19:01:46 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-my-mom-get-social-security-i-pay-her-5-200-a-year-to-take-care-of-my-kids-if-i-claim-this-on-tax/01/2856355#M273984 Hal_Al 2023-02-03T19:01:46Z