I paid for an inhome healthcare worker in 2021. Do I need to file a 1099? How do I do that?

[PattiF]

It depends on the situation. You may need to file something depending on how the healthcare worker was hired, and what the role is in the household. Were they hired through an agency? Then, they are an employee of the agency and there is nothing to be filed.

Here is a TurboTax help article that will help you with this question.

Did you hire them? Is the worker someone who controls the work and brings their own supplies? If they control the work, they are self-employed. You would give them a 1099-NEC and they would report the income on their tax return. Here is a TurboTax help article with information to help you create a 1099.

Do they follow your instructions and do you provide supplies? If the caregiver is not self-employed, they would be considered a household employee who would need to receive a W-2 from you, and you will file a Schedule H. This TurboTax help article  has more information about Schedule H and W-2 employees.

[Opus 17]

It depends.

If you went through an agency, then you don't issue any forms, the HCW was an employee of the agency.

If you directly hired the person to work in your home and you controlled the working conditions (time, place and manner of performing the work) then they are your household employee.  You must pay household employee's tax on your tax return and you must give them a W-2 for their wages, with a copy to the IRS.

If you directly hired the person to work in your home and they controlled their own working conditions, then they are a self-employed independent contractor and you do not need to issue any tax papers unless you are also a business and hired them in your business capacity, in which case you issue a 1099-NEC.  However, I think it is very unlikely that a health care worker in your home would be an independent contractor--that would mean they set their own hours and working conditions, and that just doesn't seem likely for this particular kind of work.  (It's not like a landscaper who can show up morning or afternoon or skip a day and the lawn still gets mowed.)

If you want more help on household employee's tax, let us know. 

[Opus 17]

---

@PattiF wrote:

Did you hire them? Is the worker someone who controls the work and brings their own supplies? If they control the work, they are self-employed. You would give them a 1099-NEC and they would report the income on their tax return. Here is a TurboTax help article with information to help you create a 1099.

---

Note that if the taxpayer does hire an independent contractor, they do not have to issue a 1099-NEC unless they are also a business and hired the person in their business capacity.  A non-business private individual may issue a 1099-NEC to a contractor but it is not required.

Also, I think that due to the nature of the job, a home health care aide who is directly hired by the taxpayer is very unlikely to be an independent contractor.  Health care doesn't have the same flexibility as to time, place and manner as something like mowing lawns or maintaining a pool.  I suspect this is either a directly hired household employee or a non-employee hired though an agency.