@bjshenjie wrote:
hi, i paid $18000 for my parents to babysit my kids in 2020. I didn't issue her any W2 or 1099. I saw the post that she can still report her income as "other misc income". In this case, can she still pay medicare tax (she is trying to get medicare later)? Also do I need to report these expense through my tax?
Thanks in advance
It depends where the sitting was done. If in your home then the "Household employee" rules determine and not W-2 or withholding is necessary for a parent. See IRS Put 926 for details - https://www.irs.gov/pub/irs-pdf/p926.pdf
If in the parents home then it is considered to be self-employed income reported on the parent's schedule C and SS & Medicare tax must be paid on a form SE (Self Employed tax) on income over $400.
**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.**
