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How do I file taxes on cash I was paid from an individual for house keeping duties? Do I need a 1099? Do they need to fill out paperwork? How do I verify it to the irs?

 
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How do I file taxes on cash I was paid from an individual for house keeping duties? Do I need a 1099? Do they need to fill out paperwork? How do I verify it to the irs?

If you received Cash income from self-employment of $400 or more as a housekeeper, that income is reported on a Schedule C along with any expenses incurred by you as a housekeeper.  Schedule C is part of and included with your federal tax return Form 1040.

 

If using the TurboTax online editions you will need to upgrade to the Premium edition to report your self-employed income and expenses on Schedule C.

How do I file taxes on cash I was paid from an individual for house keeping duties? Do I need a 1099? Do they need to fill out paperwork? How do I verify it to the irs?

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium version. Or use any of the Desktop CD/Download programs.


How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

 

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

 

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

 

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf

 

Turbo Tax Self Employed Tax Hub
https://turbotax.intuit.com/personal-taxes/self-employment-taxes


Turbo Tax Self Employment info
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

 

rjs
Level 15
Level 15

How do I file taxes on cash I was paid from an individual for house keeping duties? Do I need a 1099? Do they need to fill out paperwork? How do I verify it to the irs?

If you were a household employee you were not self-employed and you do not report the income as self-employment income on Schedule C. If you were paid less than $2,600 (for 2023), the person who employed you does not have to give you a W-2 or 1099, and does not have to fill out any paperwork. You simply report the income as household employee wages that were not reported on a W-2. You should keep a record of the amounts you received, but the IRS is not likely to ask for it. You do not need any other verification.


If any one household employer paid you $2,600 or more (for 2023), they are required to give you a W-2 (not a 1099). You enter it in TurboTax like any other W-2 from a job.


Here's how to enter income earned as a household employee in TurboTax if the employer does not give you a W-2. The household employee wages will be reported on Form 1040 line 1b.

  • Click Federal Taxes.
  • Click Wages & Income.
  • Click "I'll choose what I work on" or "Jump to a full list."
  • On the screen "Your 2023 Income Summary," scroll all the way down to the last section, "Less Common Income."
  • Click the Start, Update, or Revisit button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
  • The next screen says "Let's Work on Any Miscellaneous Income."
  • Click the Start, Update, or Revisit button for the first topic, "Other income not already reported on a Form W-2 or Form 1099."
  • The next screen, "Other Wages Received," asks "Did you receive any other wages?" Select Yes and click Continue.
  • On the next screen enter the total amount of wages you earned as a household employee.
  • On the next two screen, for Sick or Disability Pay and Medicaid waiver payments, don't enter anything. Just click Continue.
  • The next screen, "Any Other Earned Income," asks "Did you earn any other wages?" Select No and click Continue.
  • This returns you to the screen "Let's Work on Any Miscellaneous Income." Click Continue.

 

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