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No.
What? Is your daughter paying you to babysit for her so she can work? Is she entering the amount she paid you on her tax return to get the childcare credit? If she is doing that then she also has to enter the Social Security number or Tax ID of her babysitter. The IRS matches those up. So you have to enter the amount you were paid on your own tax return.
You are the grandparent of the children, correct?
Then yes, if you provide child care services, and if your daughter pays you for those services, she can claim the child and dependent care credit based on what she pays you. However, you must report the income as taxable income. Whether you will actually pay tax depends on your overall tax situation. (Remember that the care must be provided so she can work or look for work or go to school full time. She can't get the credit if you babysit on date night.) She will need to include your social security number on her tax return to claim the credit.
If you provide care in your home, you are an independent contractor and will file a schedule C. If you provide care in her home, you are her household employee and she must give you a W-2 if she pays you more than $2200. But she does not have to pay household employee tax since you are her parent.
@DoninGA wrote:
No.
A grandparent can be a qualifying caregiver for the credit. You may have misread the question.
@Opus 17 Yep...I did. Read it as the father not the grandfather.
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