We understand that the nanny tax does not apply and that we do not have to provide W2. We also understand that FICA does not apply because she’s the grandparent. But can she still file income tax in such a way that she will still earn credit for social security benefits? If yes, do we need to provide either W2 or 1099? And how does she file this in TurboTax/1040 form?
We would like to pick the option of getting SS credits. Is that allowed? Everything we have been reading goes the other way so we aren’t sure. If it is allowed, what needs to be done please?
Either provide her with a W-2 or have her claim the income as self employment on a Sch C ... just because it is not required doesn't mean you or her cannot report the income for SS credits.
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