I paid my mother who is over 65 for child care at her house $8200, she also receives SSA. Does she have to file a return and can I claim the child care credit?

[eljayes-25]

I'm trying to figure out if it's worth it for us to claim the child care credit while not affecting her return.

[jerry2000 · Accepted solution]

Yes, she will have to file a tax return and claim the income, her age is of no importance. She will have to pay Self-Employment tax on the income. That will be 15.3% of 92.35% of the $8,200. She has to file and pay that even if she does not owe any ordinary income tax. Personal exemptions/deductions have absolutely on effect on the Self-Employment tax. If you claim the credit you will have to supply her SSN and that will enable the IRS to check her tax return to make sure that she reports the income.