I would appreciate any help. I am hiring an individual to pick up my kids after school and care for them a couple of hours each day until I get home. I've read Pub 926 and determined her to be a household employee. The wages, however, will not reach $1800 for 2012 nor will they reach $1000 in any calendar quarter. Because of the low wage totals, I know I do not need to pay any taxes, nor do I need to file Schedule H with my personal returns. My question is, what do I give her to document the payment so I can claim the child care tax credit for the wages? I am not paying her under the table; rather I am following the letter of the tax law and I am not required to withhold taxes, pay payroll taxes, or file Schedule H. Do I give her a w-2 simply showing the 2012 wage and no deductions? 1099? HELP!! Thanks again.