Does a taxpayer pay self-employment tax on the income received from a state agency to care for her five year old with autism?

[poppi5070]

Received a 1099-NEC

[HelenC12 · Accepted solution]

No, a taxpayer does not owe self-employment tax on amounts reported on the 1099-NEC they received from the state agency if they are not engaged in a trade or business of providing day care services. See IRS Family Caregivers and Self-Employment Tax.

The taxpayer must report the full amount of the payment on line 8i of Schedule 1 (Form 1040), Additional Income and Adjustments to Income

[poppi5070]

Thanks for the reply. So I click the box for "This is not money earned as an employee or self-employed individual, it from a sporadic activity or hobby (this is not common)" ?

[RobertB4444 · Accepted solution]

Yes, you will click that box.

@poppi5070