Reporting income for babysitting my grandchildren

[jrhowde]

I am trying to report my income that my daughter paid me for babysitting her children in her home while she worked in 2021. She did not issue me a W-2 or 1099. No taxes were paid by either of us. She claimed the Dependent Care credit

IRS Publication 926 seems to say that I am exempt from paying self-employment taxes on the income since I am her parent, but I still don't know how to report the income on my taxes. I have been instructed from the chat tax assistants to report the income on a Schedule C, but according to the IRS Publication 926, it doesn't seem correct.

Any help is appreciated!

[FangxiaL · Accepted solution]

You can report it as other income. Follow these steps:

1. Open or continue with your return
2. Click on Show more next to Less Common Income under the Income & Expenses section
3. Click on Start/Revisit next to Miscellaneous Income, 1099-A, 1099-C
4. Click on Start next to Other reportable income.

[jrhowde]

Thank you for your response. So the information from IRS Pub. 926 was correct in the fact that I do have to pay federal taxes, but not self-employment taxes? By reporting as Misc. Income I would only be paying federal income tax, correct? I want to make sure that I am doing this correctly and will not have an audit finding in the future or that it messes up the credit that my daughter received. 

[Rainman12]

[deleted]