Grandmother is my babysitter

[Chelsey_1599]

I pay my grandmother to watch my 9 month old baby at my house while I work I’ve paid her 5800 for the year of 2021 but she receives disability. If I claim the credit will that effect her disability and does she have to file anything as well stating she watches him ? 

[Bsch4477]

@ Hal_Al has a good discussion here. Without knowing the terms and conditions of her disability payments I can’t comment on the effect of that income. 

https://www.google.com/amp/s/ttlc.intuit.com/community/tax-credits-deductions/discussion/child-care-...

[DaveF1006]

Yes, if you claim the credit, your Grandmother will need to report the income on her tax return as a self-employed person. Whether or not it affects her disability income depends on her disability plan. If she receives SSI for an example, the Social Security Administration has an income limit for SSI. 

According to the Social Security Administration, if she makes more than $1350 per month, her benefits will stop. If she receives this type of income, the $5800 is well below the limit.

[Chelsey_1599]

Ok so even if she doesn’t file taxes she would have to file taxes for this as self employed ? 

[Bsch4477]

She has to file if you claim child care credit. 

[SweetieJean]

She is required to report this income to the IRS, even if you do not.  As the others have said, whether/how it also impacts her disability income is up to the disability provider.

[xmasbaby0]

When you use the childcare credit on your tax return you have to enter the Social Security number or Tax ID of the childcare provider that you paid to watch your child while you worked.   The IRS matches that up with the tax return of the person who has that SSN.  So, yes, Grandma has to report the income.