I paid my parent to take care of my son. I had DFSA through employer. I used the form to disburse the amount from my DFSA and paid to my parent via Cash. I do understand that in order to take the credit of child care expense I have to enter my parent's SSN and other required information. Now, does my parent has to report this as income? If yes, what would be the income type? Misc. or Self-Employment? I did not provide my parent W-2 or 1099. My parent is not running this as a business and not working as a full time or part-time baby sitting. Parent is just helping us while we are not home. Can someone please help me understand what type of income do my parent has to report on their tax return. They don't have any other income other than Social Security for 2023.
