If I paid someone $500 for doing work around my house do they have to file this on their tax return?

[VolvoGirl]

Probably but that is their problem.  You don't  have to do anything and don't have to give them a 1099Misc.

[jojosneaks]

It depends on their total income for the year and whether they have had any taxes withheld.  If they have not had taxes withheld, have them check their Federal filing thresh-hold requirements and their State filing requirements.  They may not need to file Fed or State (or both)

If they have had taxes withheld they should file, since very low income earners usually get some/all of their tax payments refunded.

[Hal_Al · Accepted solution]

Yes. All income is reportable unless specifically exempt by law (e,g, VA benefits).