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amanda-sanford
New Member

A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

 
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LeonardS
Expert Alumni

A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

No, the IRS requires that all income individual  receives is reported on their tax return.  The $400 you refer to is the limit under which a self-employed individual does not have to file self-employment taxes.  Your friend has to report her income from babysitting on her tax return.

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TomK100
Employee Tax Expert

A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

Babysitting income is self-employment income and should be included on your tax return. The IRS requires you to file if you had at least $400 in net earnings from self-employment (income minus expenses).  

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amanda-sanford
New Member

A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

It's under $400 so she doesn't need to claim it right? I'm asking because she already filed with her husband (her $0 income and his income from his job) and I get $50 from my child care tax credit if I include it in my list of childcare expenses but I don't want her to get audited if I put her down and she hasn't claimed the income.

LeonardS
Expert Alumni

A friend is unemployed but filing jointly with her employed husband. If I claim the $240 I paid her for my childcare credit does she have to claim it on her tax return?

No, the IRS requires that all income individual  receives is reported on their tax return.  The $400 you refer to is the limit under which a self-employed individual does not have to file self-employment taxes.  Your friend has to report her income from babysitting on her tax return.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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