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EBHM03
New Member

If I get paid by cash/personal check for my cleaning/dog walking/assistance with errands. How do I file taxes?

 Is my employer supposed to fill out a 1099 for me even though he/she pays me by personal check/cash? What if the employer and I have family relations?

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1 Best answer

Accepted Solutions
Hal_Al
Level 15

If I get paid by cash/personal check for my cleaning/dog walking/assistance with errands. How do I file taxes?

If your "employer" is an individual,  they are NOT required to issue you a 1099-Misc. Only businesses are required to issue 1099-misc's.

The IRS considers  undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400.

But there is an exception, for your type of work (household employee), if the total amount you earned for the  year is less than $2000 ($1900 in 2015). Under the IRS rules. you can avoid the 15.3% self employment tax.

Relatives may or may not be treated differently depending on the details of how are you related, your age and if you are the dependent of the "employer". It also matters as to the nature of the work. As someone else already indicated, family favors , chores and gifts are not necessarily income. If you have other clients, other than family, that would have a bearing on whether the money from family is income too.

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3 Replies
Hal_Al
Level 15

If I get paid by cash/personal check for my cleaning/dog walking/assistance with errands. How do I file taxes?

If your "employer" is an individual,  they are NOT required to issue you a 1099-Misc. Only businesses are required to issue 1099-misc's.

The IRS considers  undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400.

But there is an exception, for your type of work (household employee), if the total amount you earned for the  year is less than $2000 ($1900 in 2015). Under the IRS rules. you can avoid the 15.3% self employment tax.

Relatives may or may not be treated differently depending on the details of how are you related, your age and if you are the dependent of the "employer". It also matters as to the nature of the work. As someone else already indicated, family favors , chores and gifts are not necessarily income. If you have other clients, other than family, that would have a bearing on whether the money from family is income too.

If I get paid by cash/personal check for my cleaning/dog walking/assistance with errands. How do I file taxes?

It sounds like you are an independent contractor, not an employee.  Whether or not you get a 1099-MISC, you must report that income, so keep good records.

However, if "family relations"  mean you are getting an allowance for doing chores, that is different.  How old are you, and do you live with the person who is paying you?

EBHM03
New Member

If I get paid by cash/personal check for my cleaning/dog walking/assistance with errands. How do I file taxes?

No I do not live with the person. The person works two jobs and owns some real estate and needed someone to keep track of their errands/properties temporarily until they find someone else.

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