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Household Employee: Is 1099-NEC required if earnings are LESS than $2300?

If annual pay is less than $2,300 (but over $600), is a family required to give a 1099-NEC to an independent household worker?    

 

I already know that it is required to give a W-2 along and make other payroll filings if the person is paid over $2,300 for the year, or more than $1000/quarter.   

 

 

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Household Employee: Is 1099-NEC required if earnings are LESS than $2300?


@kevin5 wrote:

If annual pay is less than $2,300 (but over $600), is a family required to give a 1099-NEC to an independent household worker?    

 

I already know that it is required to give a W-2 along and make other payroll filings if the person is paid over $2,300 for the year, or more than $1000/quarter.   

 

 


No.   Only businesses issue 1099-NEC's - individuals do not.  But household employee income is entered as W-2 income not reported on a W-2 if under $2,300.  It is not self-employed income reguardless of the amount.

 

Household Employee income under $2,300 should be reported in:

Miscellaneous Income
Other Income not reported on a W-2
Other wages (yes)
House Hold Employee.

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "household employee income” which will take you to the same place.

 

Note: TurboTax will say the limit is $2,200 which was the 2019 amount and has not been updated with the 2020 amount so ignore that.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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1 Reply

Household Employee: Is 1099-NEC required if earnings are LESS than $2300?


@kevin5 wrote:

If annual pay is less than $2,300 (but over $600), is a family required to give a 1099-NEC to an independent household worker?    

 

I already know that it is required to give a W-2 along and make other payroll filings if the person is paid over $2,300 for the year, or more than $1000/quarter.   

 

 


No.   Only businesses issue 1099-NEC's - individuals do not.  But household employee income is entered as W-2 income not reported on a W-2 if under $2,300.  It is not self-employed income reguardless of the amount.

 

Household Employee income under $2,300 should be reported in:

Miscellaneous Income
Other Income not reported on a W-2
Other wages (yes)
House Hold Employee.

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "household employee income” which will take you to the same place.

 

Note: TurboTax will say the limit is $2,200 which was the 2019 amount and has not been updated with the 2020 amount so ignore that.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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