If you enter the childcare credit on your tax return you also have to enter Grandma's Social Security number or Tax ID in order to get the credit. The IRS matches those up. Grandma has to file a tax return that shows that income.
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
Thank you so much that helps I do not think I would get the credit because my grandmother does not file taxes and I paid her in cash
@ambrawilmer wrote:
Thank you so much that helps I do not think I would get the credit because my grandmother does not file taxes and I paid her in cash
If you legitimately paid someone to care for your children so you can work, you can claim that expense for the credit, even if the person who provided care does not pay taxes. You list your care provider's name, address and SSN on your return when you claim the credit. What happens to the care provider is between then and the IRS and does not influence whether or not you get the credit. The IRS will look to see if the care provider needs to pay taxes, but they may not owe taxes depending on their other income and tax situations.