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?

[TomK100]

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).  

[amanda-sanford]

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 · Accepted solution]

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.