Sign up for AARP’s The Daily newsletter covering COVID-19 and more — sent Monday through Friday.
by AARP Tax-Aide, AARP, February 26, 2008
Q: My daughter gives me $3,600 a year to care for her children. She claimed this amount on the child-tax credit. Do I need to report that income and pay taxes on it?
A: Yes you do. And remember that your daughter must report your Social Security Number on the form she uses to compute her child-care credit.
Report your income on your Form 1040, line 12. You should complete Schedule C-EZ, which will permit you to deduct any expenses you have in giving the care. For example, deduct auto mileage to your daughter's home at 48.5 cents per mile if you go there to give the care.
This is self-employment income, so you must also complete Schedule SE, which calculates the Social Security and Medicare taxes you must pay on your net income from providing child care.
These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided.
Please leave your comment below.
You must be logged in to leave a comment.
Featured AARP Member Benefits
See All >
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age.
You can also manage your communication preferences by updating your account at anytime. You will be asked to register or log in.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at