Do I need to issue w-2 to grandma who babysit at my home?

[MK100]

My mom lives with us but is not our dependent. 

1) Can she be considered as a household employee since she babysit in my house? 

2) I'd like to claim this $4000 expense paid to her and get reimbursed from my dependent flexible spending account (FSA). I know I don't need to withhold FICA tax, but do I have to issue w-2?  Would there be a penalty of not issue W-2 although no FICA tax needs to be withheld.

3) When I report this expense in my tax return, in addition to report this expense on form 2441 (child and dependent care credit), do I have to fill out houshold employee form or Scheule H? I assume the form 2441 is the only one that I need to put her name in?

Thanks!

[tagteam]

@Critter-3 ?

[MK100]

Can anyone help answer this question? Thanks!

[tagteam]

See https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-schedule-h-household-employment-taxes/L7X...

[tagteam]

You can also contact Support today if you do not get an answer here.

What is the TurboTax phone number? (intuit.com)

[MK100]

Thank you! My situation is more special as I hired my parent to babysit. I assume the payment threshold would not apply when it comes to fill schedule H?

[MK100]

From the IRS website

https://www.irs.gov/taxtopics/tc756

It says:

About W-2:    If you must withhold and pay social security and Medicare taxes, or if you withhold federal income tax, you'll need to complete w2 for each employee.

About Schedule H:    If you pay wages subject to FICA tax, FUTA tax, or if you withhold federal income tax from your employee's wages, you'll need to file a Scheudle H.

Since parents are exempt from FICA tax regardless of the $  amount, then no w-2 or schedule H needs to be filed. 

Am I right?