If she works in your home, she is your household employee. Because she is your parent, you are not required to pay the household employee tax (nanny tax) -- which is the employer half of SS and medicare -- and she does not have to have withholding. If you paid more than $2200, you are supposed to issue a W-2 (her wagged would be in box 1 and boxes 2-6 would be blank) but she can report the income even if you don't issue a W-2. The income is added to her other income on line 1 of 1040 with "HSH" written next to it. Household employee income is probably in the "other income" section of Turbotax or you can use the Find function to go to the right page.
