1. 1099-NEC vs w2 You are struggling with contractor or employee. The IRS uses several factors to determine if employee or contractor. An employee is told when to work, how to work, and provided supplies. A contractor has the option to turn down a job and does it when they are available.
See Worker Classification 101: employee or independent contractor to help you determine if your daughter is an employee (w2) or a contractor (1099-NEC).
2. If you file form 2441 for child care expenses, those expenses would be included.
3. You can file the forms through QuickBooks using your TurboTax account. If you are filing a w2, you can calculate those fees. If she is a contractor, as I suspect, then you issue the 1099-NEC and have no tax consequences.
4. If you file with her as a household employee, all the taxes will be included on your Sch H on your personal taxes. Since you did not withhold any taxes, if you decide she is an employee, you will need to pay 15.3% for Medicare and Social Security tax.
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