You may want to contact the IRS for more details on this. If there is some sort of exception that is not known or new, they can give you the details. If it is an error on their part, then you can get it resolved and be sure you are filing properly this year and next. I cannot find any type of exclusion, I can only find the opposite which is below. Additionally, home health workers are subject to SE taxes as well if they are not treated as an employee.
The only thing that could make sense is if the agency was not allowed to treat her as an independent contractor and they maybe paid their share of employment taxes. Does she have any taxes withheld from her pay?
Many students do odd jobs over the summer to make extra cash. Earnings you receive from self employment – including jobs like babysitting and lawn mowing – are subject to income tax.
If you have net income of $400 or more from self-employment, you will have to pay self employment tax. This pays for your Social Security and Medicare benefits, which are normally paid for by withholding from wages. The self-employment tax is figured on Form 1040, Schedule SE. Net income is the money you earned after any deductions are subtracted, such as business expenses.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
