Tax time! Claim self employed, or not self employed???

I file married joint w/my husband. He made $55,000
I worked part of the year at the YMCA, and made $1,600.
We have W2's for these jobs.

I also babysat for a friend. She just paid me cash. I have always known I would need to claim that income when it was tax time. However, when I contacted my tax preparer, she is insisting that I HAVE TO declare myself "SELF EMPLOYED", fill out a schedule C, be subject to self-employment taxes....etc etc etc.
But I just was babysitting my friends kid. I made about $2,600 doing it. But I am not a "Day Care Center", or a sole proprietorship. I have no business name or licensing.
I was thinking I could just claim my babysitting money as "Other Income" (I remember seeing a place for this on the tax sheets), and just pay income tax on it as that.

Do I HAVE TO declare that I'm self-employed over this?
Any professional opinions on this one?

Yes, this is not other income like a winning or something. You are considered self-employed. She is correct. Schedule C is the only legal way to go.

Did you give your friend you social and receipt so she can take her rightful tax credit?

If she isn't claiming on her taxes that she paid someone for child care, then it is "under the table" and you do not have to claim it.

The best thing to do is simply ask her "are you going to be reporting my income as an expense"?

If not, no problem...if so, you'll need to report it.

Schedule C it if you want to pay out the butt for taxes 12.4% social security, 2.90% medi-care as well as your income tax of 13%.

If she isn't claiming it, then what makes you think you should?

There are millions here in Texas that don't pay taxes, why should all of us who are legit do it?

You will need to file a Schedule C to declare the babysitting income and yes you will be subject to self-employment taxes.

"Other income" does not include income from self-employment. One of the things it does include is taxable distributions form
ESA, QTP, HSA, Jury duty pay, prizes, and gambling winnings.

Note: The IRS is very specific that self-employment income cannot be included on this line (line 21 of form 1040)

did your friend claim the child care expenses on her tax return for what she paid you and did you give her your soc sec # for tax ID? If yes, then you must file a schedule C and claim the income and pay the taxes = if she didn't claim you, then don't declare the income - no one will know