Yes, it is complicated, and confusing.
If you are an employee, and your daughter is your employer, you would be paid on a W2 HOWEVER she would not need to include any FICA tax on your wages.
So that is true, no Nanny Tax.
She would file Schedule H.
If you are paid cash or on a 1099-NEC or 1099-MISC, technically you would need to file Schedule C as self-employed.
"Special rules apply to workers who perform in-home services for elderly or disabled individuals (caregivers). Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the elderly or disabled individuals and these individuals have the right to tell the caregivers what needs to be done. These services may or may not be provided by a family member. If the caregiver employee is a family member, the employer may not owe employment taxes even though the employer needs to report the caregiver's compensation on a Form W-2. See Publication 926, Household Employer's Tax Guide for more information. However, in some cases the caregivers are not employees. In such cases, the caregiver must still report the compensation as income of his or her Form 1040 or 1040-SR, and may be required to pay self-employment tax depending on the facts and circumstances."
IRS LINK
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
