@GeorgeDenseff
I don’t understand this answer. The taxpayer is not required to issue a W-2 in order to claim the child and dependent care credit. If the taxpayer claims the credit, the IRS will look for matching income on the parents tax return. If the parents don’t have a W-2, but they do have income marked “HSH“, that will satisfy the IRS. While I agree that the taxpayer does not have to report babysitting by the grandparents as wages (and would not claim the credit), that does not seem to be the thrust of the question.
