My parents are babysitting our kids this year and we will be paying them annually ~12K. My parents live with us and they are 73 years old. I see that nanny tax doesn't apply to parents, but they would like to report this income and pay FICA tax to accrue SS credits for them because they don't have 40 credits yet(recent immigrants).
1) What is the best way for me to report this payment in my tax return and how should my parents report it in their return to acrues SS credits?
2) Can I claim dependent care credit for the money paid to my parents for child care?
