Babysitter? Child Care Credit

[dc214]

My mom provides care for my son in her own home while I work. I pay her in cash or sometimes just pay her bills for her as a form of payment. It probably totaled up to $5000 for the year of 2022. I wanted to do the child care credit and it had me enter in her basic info, address, the amount I paid her and eventually asked me for her SSN for Form 2441. What happens then to me or her? Do I need to give her a W2 of some sort? Or how will she file her taxes?

I am beyond stressed out now because this was my first time filing my own taxes. I don’t want to screw my mom over from doing this. 

[VolvoGirl]

She will need to file it as self employment income.  Is she married?  Does she have other income?  Does she use Turbo Tax?    

She can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs. All the Desktop programs have the same forms.  You just get more help and guidance in the higher versions.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

[dc214]

My mom is married and my dad does their taxes and files a joint thing. They go to someone that does their taxes for them, that person uses TurboTax. Will she or I have to verify how I paid her for providing care?

[Bsch4477]

You don’t have to give her any form but since you are claiming child care credit she will have to report that income as an independent contractor. 

[dc214]

How will that affect her when my dad and her file their taxes? And how will she report the income when I pay her in cash or pay her credit card bills? I use my personal bank account to pay for those bills for her if that matters.

Sorry I am very new to all of this and just worried about everything on her end now. What exactly is an independent contractor? What will she have to do or provide?