First you must determine if your niece is considered a household employee. The IRS link below will help make that determination. In this situation a W-2 is required to be issued.
If you decide your niece is not a household employee, then you could provide a letter to the lender stating and verifying the payments she is or was paid for her services.
As stated in an earlier post in this thread you are not required to file information return(s) such as Form 1099-NEC, if any of the following situations apply:
- You are not engaged in a trade or business.
- You are engaged in a trade or business and
- the payment was made to another business that is incorporated, but was not for medical or legal services or
- the sum of all payments made to the person or unincorporated business is less than $600 in one tax year
@RRL1
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
