New Member

I had two care givers for my wife in 2016 and paid one $1630 the other $1970. Should I generate a 1099 for them? Also how do I deduct the payments on my taxes?

If I generate a 1099 for a care giver, which one is used?

New Member

Retirement tax questions

No, you are not required to. You may use 1099-Misc if you choose. Income would go in Box 7. 

You would claim expenses on form 2441, Child and Dependent Care Expenses.

Under Deductions and Credits

  • You and Your Family
  • Child and Dependent Care Credit

The program will ask several questions and your wife must be incapable of self-care.

Based on the IRS definition, it means not being able to do normal everyday activities without someone's help due to physical or mental limitations. This can include:

* Individuals who can't dress, clean, or feed themselves because they are physically not capable.

* Individuals who can't dress, clean, or feed themselves because they are mentally not capable.

* Individuals who need constant monitoring to prevent them from injuring themselves.

Here is a list of people to whom you must issue a 1099-Misc.

File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:

  • At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8);
  • At least $600 in:
  1. Rents (box 1);
  2. Services performed by someone who is not your employee (including parts and materials), box 7;
  3. Prizes and awards (see instructions for boxes 3 
    and 7);
  4. Other income payments (box 3);
  5. Medical and health care payments (box 6);
  6. Crop insurance proceeds (box 10);
  7. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 7);
  8. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);
  9. Payments to an attorney. See Payments to attorneys, later; or
  10. Any fishing boat proceeds (box 5).

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (box 9).

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