Household employee questions

[veritas]

Client receives payments for childcare in her employer's home. Also is paid for taking same children to school in her car. Lastly is paid for providing childcare for the same children in her own home.

It would seem to me she is a household employee. But what about time in her car and time in her own home?

Of course employer did nothing as far as reporting on a W2.

[JG EA]

Well, here are a couple of quotes from IRS.

"Household work is work done in or around your home by the following people.
 Babysitters
A worker who performs child care services for you in his or her home generally is not your employee."

But what to do. If she made under $1,700 while in their home she could still put it on Line 7 without a W-2. If she made more would she have to turn them in so to speak in order not to count on C?
As for the babysitting in her home - I guess Schedule C for that part of it. The car - no idea. Since they pay her for everything, ideally they would put her on a W-2,.

(I'm assuming that she doesn't hold herself out as self-employed and does jobs for others.)

[FEDUKE404]

Vote for all W2

With the facts at hand, I would consider all of the income to be a W2 issue. She is effectively performing a service for her "employer" in all instances. It would be no different from a home care-provider taking an adult to doctor appointments, shopping, etc.

Where things could get interesting would be if she kept other children in her home (aka Sch C scenario) and that could create some tax-related head scratching.

FE