In order for you to claim the child care credit, your grandma has to claim the income.
If she worked in your home, she would be considered a household employee and receive a W-2.
You have a household employee if you hired someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done but how it is done. If the worker is your employee, then it does not matter whether the work is full-time or part-time nor that you hired the worker through an agency or from a list provided by an agency or an association. It also does not matter whether you pay the worker on an hourly, daily, weekly, or by the job
