If you, in your capacity as a private non-business person, have employed an independent contractor to care for your wife, they are responsible for their own taxes and you do not need to issue a 1099.
If you have a hired a household employee to care for your wife, you must give them a W-2. The difference between a contractor and a household employee is that a contractor retains a certain independence regarding the place, time, and manner in which they perform the work. If the caregiver is required to perform the work at a specific location (your home) and at specific times, then they are your household employee and you must issue a W-2. You must also pay household employees tax on your tax return.
I have never used TurboTax quick employer forms to issue a W-2, you may be able to do this but it would go under your personal Social Security number rather than under your business. You can also e-file a W-2 through several different websites for about five dollars. Lastly, you can e-file a W-2 for free at the Social Security website, but the registration process is a little cumbersome. Then you must report the household employee on your personal 1040 and pay the required house all employee taxes, which is the equivalent of Social Security and Medicare tax.
