@LQT "she lives with us with no other income..."
Do you claim your mother as a dependent on your own tax return? If you do, then you cannot use her as a childcare provider to get the childcare credit on your tax return--you cannot claim a dependent as your childcare provider in order to get the childcare credit or to use the FSA money.
Please scroll up in this thread to review the responses already provided by TaxGuyBill and Opus regarding giving your mom a W-2 as a household employee and her requirement to file a tax return reporting the babysitting income.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
