re: Babysitter (Niece) received 5071c letter. Never Filed A Return

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But he didn’t 1099 her right? He simply tried to get a tax benefit (writing off childcare) and the byproduct affected his niece.

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Exactly

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I’m just curious though how did she get roped in? You named her? I guess I didn’t realize you had to specify who did the babysitting.
How would he have claimed childcare credits without affecting his niece?

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Yes I had to list her. That is why I said her mother (my sister) knew I was claiming her cause she’s the one who gave me the info. Pretty much went like this “I think I can get a credit from *my niece* for watching the kids. I have to list her on my taxes though. You mind?” My sister “That’s nice! Go ahead.” We both thought she would fall under the minimum income and didn’t consider the self employment side of it. As Zzyzx said, I didn’t 1099 her. I simply took a credit that unintentionally affected her. Yes I’m going to pay her part and file for her. I just wanted to make sure the 5071c letter was because of this and not something else. Thanks for the non help from most of you guys. I really appreciate it..