My mom lives with us but is not our dependent.
1) Can she be considered as a household employee since she babysit in my house?
2) I'd like to claim this $4000 expense paid to her and get reimbursed from my dependent flexible spending account (FSA). I know I don't need to withhold FICA tax, but do I have to issue w-2? Would there be a penalty of not issue W-2 although no FICA tax needs to be withheld.
3) When I report this expense in my tax return, in addition to report this expense on form 2441 (child and dependent care credit), do I have to fill out houshold employee form or Scheule H? I assume the form 2441 is the only one that I need to put her name in?
Thanks!
