1099-NEC

Hello, I am doing my daughter's taxes and she got a 1099-nec. This for taking care of her son who I autistic, such as taking him to and from a special school, working at home with him, etc. this is pretty much a full-time job so she can't get a job outside of the home. does she have to pay taxes on this or does this fall under the medicaid waiver payment as difficulty care payment?

Thanks in advance for your help.

Len

255

Employee Tax Expert

Mar 7, 2024 4:40:23 PM

This would not qualify unless the payments were made by the state, in which case it would not be reported on Form 1099-NEC.

Payments made on 1099-NEC indicate no FICA Tax (social security) was withheld, putting that burden on the person that receives the 1099-NEC.

(Difficulty of Care has the FICA paid through the payee)

Your daughter will need to file Schedule C for that income as a Self-Employed Taxpayer.

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1099-NEC