Are non-relative caregiver payments from the State of Florida subject to backup withholding? I am not sure which box to check on the W-9.

[1greengrower]

I receive monthly payments for our foster daughter and thought they are tax exempt. Filling out the W-9 for the state vendor site to see payment history and I am not sure what box to check.

[tagteam · Accepted solution]

See https://www.irs.gov/businesses/small-businesses-self-employed/backup-withholding

Also, you might want to contact the state agency and inquire.