Yes, you can still pay your Dad.
You don't "declare" that income; your Dad declares it on his tax return. You may be able to declare the Child and Dependent Care Credit on your tax return. Here's a link to TurboTax's help article on that subject:
https://turbotax.intuit.com/tax-tips/family/the-ins-and-outs-of-the-child-and-dependent-care-tax-cre...
Both you and your Dad need to keep track of the money you pay him, because you'll both need that information for your tax returns at year's end.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
