Uncertainty about child and dependent care credit

[aphelps8]

I am a single mother of four and I also take care of my mother.  In exchange for me paying for her shelter, all utilities, phone, and any other things that pop up, she watches my kids for me.  There is never, however, an exchange of money between us.  It would seem that I would qualify because of the amount that I pay is so great, and the amount of money I make is so low.  But I am fearful of filing and it hurting her SSI, as they knew when she got approved that there was never an exchange of money to her.  Also, unsure if she is supposed to be claimed as a household employee.  I never claim her.  Just trying to understand if I am eligible for the credit, do I then need to have her file taxes?  She doesn't make enough now to have to file.

Hope this makes sense.

[JamesG1]

In order to qualify for the Child and Dependent Care Credit, you must: 

• Pay expenses for a qualifying individual (a child or dependent) to enable you or your spouse to work or actively look for a job .
• Have earned income. Earned income is money you earned from a job. However, income from an investment or dividend does not qualify as earned income. 
• Provide the care provider’s information on your tax return. This includes name, address, and their social security number (SSN). In order to claim the expenses you pay your provider, the provider can not be your spouse, a parent of the dependent child, another dependent claimed on your tax return, or your child who is age 18 or younger (even if they are not claimed as a dependent on your tax return). 

The payment to your mother would be taxable income to her.  Assuming that the payment were self-employment income, a taxpayer would have to file an income tax return if the net earnings from self-employment were $400 or more.