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Level 3
posted Feb 12, 2022 2:11:11 PM

1099 Preparation

My dad has been accepted to hospice and is in an assisted living facility. In addition to the monthly cost for his apartment in the assisted living facility, he needs 24/7 care. He's paying for the monthly assisted living facility and the cost of 24/7 aides and nurses.

 

Each week, each aide/nurse completes a "timesheet" and signs it. Based on the agreed upon hourly rate, he pays them by check. I will be doing his tax return for 2021 and he will itemize deductions. Subject to the 7.5% medical expense "threshold", I will deduct the cost of the aides/nurses and the assisted living facility that he lives in. He's currently bedridden.

 

Do I have to prepare a 1099 for each aide/nurse? If so, do I have to advise the IRS that I've done that and how do I do it? One aide has mentioned that in 2022, her income will be high.

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2 Replies
Expert Alumni
Feb 12, 2022 3:55:24 PM

No, since your dad is an individual and is not paying the aides to do work provided by a business, you do not need to file 1099s nor do you need to report the payments to the IRS.

 

See What is a 1099-NEC? for more information on who needs to file Form 1099-NEC.

Level 3
Feb 12, 2022 4:01:11 PM

Thank you. I thought a 1099-NEC was required for each aide/nurse. Without a 1099, how does the IRS know that my dad paid them? If I don't provide a 1099-NEC to each, why would they report it as income?