Do I still need to fill out Form 2441 if I paid my grandmother to watch my child while I worked?

[octovia225]

I have already completed the child and dependent care credit section, but it did not prompt me for form 2441. Does it prompt for the form under the review section?

[ColeenD3]

Yes, in order to claim the Child Care Credit you must file Form 2441. In addition, your grandmother must claim the income. She is your household employee and you should issue her a W-2. Please see this  LINK  for more information.

[Opus 17]

If you entered qualifying expenses in the child and dependent care section (including the provider's name and social security number) Turbotax will automatically create form 2441.

[octovia225]

Do I still need to issue her a W2? 

[Opus 17]

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@octovia225 wrote:

Do I still need to issue her a W2? 

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If you pay someone to work in your home, more than $2200, you are required to issue a W-2.  Because the person is your parent, you are not required to withhold tax or pay household employee's tax.   There are a few places online you can e-file a W-2 for a small fee, or you can register an account with the social security administration and file it for free.  (After issuing all your W-2s -- presumably this is the only one -- you also file a form W-3 with the government which is a summary of all your W-2s.  Just follow the online instructions carefully.)

If the person worked in their home, they are an independent contractor.  You don't give them a 1099 or a W-2, but you will need their social security number to claim the credit, and the IRS will be looking to see if they report corresponding business income on their tax return.