kimmelaaron
Returning Member

I have children who are cared by their grandmother (spouse wife), however...

The grandmother lives in our house as well. 

Would like to apply money paid to her (~$8,000/yr) towards our dependent care credit.

Is there any issue with this, considering we will enter her ssn & address in? Which, would appear same as ours when she reports with 1099misc/1040.

 

What I can find regarding,

"A 2: No, the taxpayer does not owe self-employment tax on amounts reported on the 1099-MISC he received from the state agency if he is not engaged in a trade or business of providing day care services, as appears to be the case in this situation. The taxpayer must report the full amount of the payment on line 7a, Other Income, of Form 1040 or 1040-SR."