I was a babysitter in 2017. Made $1050. Watched an adopted special needs child. I was paid paper checks from a trust fund for the child issues by an attorney. 1099misc ?

[Chris14]

I watched the child in her home where she lives with her parents who adopted her. Should I receive a 1099 MISC, a W2 or nothing and report the income as other income? Would it be different if I made any more money or any less money?

[Hal_Al · Accepted solution]

You should not expect any forms and file from your own records. Because you worked in the parent's home (not your home) and the amount was less than $2000, you will not have to pay social security tax, but can count it as earned income.

In TurboTax, enter at:

 Federal Taxes

Click on Wages and Income

Scroll down to Less Common Income

On Miscellaneous Income, 1099-A, 1099-C click the start button

On the next screen click the start button on Other Income not already reported on Form W-2 or Form 1099

Answer Yes on the next screen and enter the amount under Household Employee Wages

TurboTax will put the income on line 7 of form 1040 or 1040A with the notation "HSH". 

[Chris14]

Thank you! Would the answer be different in the same situation if I made more than $2000?

[Hal_Al]

Yes. Over $2000, social security tax must be paid. So, you would file the income as self employment income, instead of Household employee income.
Interestingly, the rule is $2000 per household. So, for example, if you  made $5000 in 2017 babysitting for three households and none of them paid you more than $2000. you could still file HSH

[Chris14]

Thanks again. Last question. In that situation where I make more than $2000 in one household would the parents of the child I watched need to provide me a W2 and does it matter that I am paid from the daughters trust fund via the attorney that manages it and not the parents themselves?

[Chris14]

I was under the impression that as a household employee earning over $2000 and/or having tax withheld I should be issued a W2?

[Hal_Al]

Yes, that's the way it's "suppose to be". If tax was withheld, you should be expecting a W-2. Even if tax was not withheld, the proper way is with a W-2. But, that's not how it's always done. Without a W-2, you should file as self employed. It's best to resolve how taxes will be handled up front.
I cannot answer for sure, if payment from a trust makes a difference, but probably yes. You are more likely to be considered self employed.