Child care income is considered as self-employment income by the IRS.
Your nanny needs to report this income as self-employment income.
She'll need to use TurboTax Deluxe to report this income
To report this income in TurboTax, open her tax return and follow these steps:
- Click on Federal in the left-hand column, then on Wages and Income on top of the screen
- Scroll down to All Income, locate the Self-Employment section
- Click Show more and click Start next to Income and Expenses (see attached screenshot).
If she has expenses to claim against this income, she'll need to upgrade to TurboTax Self-Employed.
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