In your case, you are a household employee... but you don't need a W2; grandparents are exempt. You should simply report the income as miscellaneous income. Here are the steps to do so in TurboTax:
- Federal tab
- Wages & Income section
- Select Less Common Income
- Select Miscellaneous Income 1099-A, 1099-C
- Select Other Income Not already reported on a form W-2 or Form 1099
- Enter amount received as Wages Earned as a Household Employee
