I paid my mother to watch my kids at my house. I believe we (my husband & I) are exempt from paying employer taxes. But does she have to file? If so, how would she do it?

[ep2250]

She was paid $8,320 for the entire year. She is married but separated from my father. So I think she would either file HoH or married filing separately right? 

[MarilynG · Accepted solution]

If you are claiming the amount of child care expenses you paid, your mother could report the income you paid to her.

However she is not required to file with this income, unless she has other taxable income as well (not Social Security).

This would be Self-Employment income, and she would be charged Self Employment tax on the income.

She can't file as HOH unless she has a dependent that lived with her over 6 months of the year; otherwise, she would file as Married Filing Separately.

Here's more info:

https://ttlc.intuit.com/replies/3302274

[Hal_Al]

For an alternate way to do it see a similar question at <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4218111-where-do-i-claim-money-i-received-for-watching-my-granddau...>