I am divorced and I am not remarried. I am claiming my son as a dependent. My parents took care of my son and I paid them $4500 out of the money from FSA depende care. How should they report the income? I know that they don't fall under the excemption for medicare and social security tax because they are taking care of my child who's under 18 and that I am divorced and haven't remarried.
Some say that they are house employee and that I need to issue them a w2. I am new to this and I have not done any tax withholding. I simply wrote them checks.
Some say 1099 NEC.
Some say to just report income as "other income" under Schedule 1 line 8z.
Or should it be self-employment income on Schedule C?
