My wife and I both work and her mother lives with us. We file jointly. Her mother has a small part time job and also cares for our children. She also receives SS. We paid her $3000 for 2019 and also spent about $4000 on summer camp childcare as well. We put $5000 into company Childcare FSA. How do we claim the money we paid to her? Also, how does she claim the money paid to her on her taxes to match up?? I assume she would be a household employee and we do not pay nanny tax since she is my wife's parent. Where it says to input income as a household employee it says only if under $2100, but since she is my wife's parent I read another answer on here that said the limit does not come into play.
Any help in clarification is appreciated. THANK YOU
