We pay my mom to watch our child inside our home. Can she still get credit for social security benefits?

[danial-and-tina]

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?

[Critter-3]

She cannot be exempt from SS  and also get SS credits ... pick one option.  

[danial-and-tina]

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?

[Critter-3]

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.