How does my mother report the wages I paid her as a household employee ?

[ash_winks]

I hired my mother as a household employee, and paid her $X in all of 2024, via Zelle payments every month.  She also has some interest income from her foreign accounts.  She is not taking care of any children.  As I understand it, since she is my parent, I don't have to deduct SS or Medicare from the wages I paid her monthly, and nor do I have to issue her a W2.  But now, how does she report the wages ?  She tried reporting it as "self employment", but that shoots up the tax owed, and based on the discussions I have seen here, I understand that she has to report it as "wages not reported on w2".  But where in TurboTax does she report these wages ?  Any advice would be greatly appreciated !

[DaveF1006]

 Yes, here is how she should  report the income.

1. Go to federal or federal taxes
2. Go to income or Wages and income depending on her version of Turbo Tax
3. Go to less Common Income
4. Go to miscellaneous income
5. Go to other Income not Reported on a W2 or 1099

For future reference, please read the Turbo Tax link provided below for further information regarding Schedule H requirements, although it does mention in the IRS link, you do need to withhold FICA taxes if your employee is a parent.

What Is Schedule H: Household Employment Taxes

[Opus 17]

Household employee wages not on a W-2 have their own specific place on form 1040, which is line 1b.  Hopefully, if you follow the links for "other wages not on a W-2", one of the options will be household employee. (I have not tested it.)

You are correct that you do not pay household employee tax, she does not pay SS or self-employment tax, and she does not get social security work credits.