I don't think you should issue a 1099-MISC to the caregiver. The IRS instructions for Form 1099-MISC say the following.
"Trade or business reporting only. Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable."
The caregiver is under the mistaken impression that she needs a 1099-MISC to report the income. She does not need it. She can report the income based on her own records of how much she received.
