Are you planning to claim the Child and Dependent Care Credit? Keep in mind that this credit is only for money paid for child care for children under the age of 13.
The $4000 paid to your parents does count as their income and should be reported using the instructions provided by @DianeW777 above.
It's unclear as to the source of the $4000. If you paid the $4000, then you could claim the Child and Dependent Care Credit on your taxes assuming you meet the requirements.
The IRS provides an interactive tool at the following website to determine your eligibility to claim the Child and Dependent Care Credit - IRS Child and Dependent Care Credit .
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