If the grandmother is getting paid to babysit her grandchild, do the parents of the child have to submit a form 1099 MISC?

[nannie61]

I have the grandmother's social security, so could I forgo issuing a 1099 MISC as long as the grandmother claims income paid to her.

[Ashby · Accepted solution]

Yes, you can forego the 1099 because the grandmother is not being paid in the course of the payer's trade or business.

I assume this money paid is being used to claim the dependent care credit on the parents' tax return. If so, grandmother will need to report the self-employment income on her return as well.

If not, this income could be considered a gift to the grandmother and not reported.