My babysitter had a side job of watching my child and me paying. Not sure if this will mess up the person who claimed my babysitter as a dependent when they filed. Can dependents have side jobs? I paid over 5000 and would not want to lose it but also i do not want to raise any flags if she was not supposed to be working
No it does not matter for you that the childcare provider can be claimed as someone else's dependent. They just cannot be YOUR dependent.
Yes, a dependent can have a job. The childcare provider is responsible for reporting their own income on a tax return. You do not have to concern yourself with their tax return. What you need is the childcare provider's Social Security number or Tax ID.
Yes, you can still claim the dependent care expenses if the childcare provided is a dependent on another individual's return. As xmasbaby0 stated, a dependent can have a job without paying for more than half of their support.
To claim dependent care in TurboTax, follow these steps:
For more information on dependent care deductions, see the link below:
Child and Dependent Care Tax Credit