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sfiles17
New Member

My daughter paid me to watch her grandson in her home. Does she need to give me a W-2? Am I correct that I do not need to pay FICA or Medicare taxes as I am a parent?

 
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viktoriyab11
New Member

My daughter paid me to watch her grandson in her home. Does she need to give me a W-2? Am I correct that I do not need to pay FICA or Medicare taxes as I am a parent?

Yes, she will gave you W-2 form. However, it is different rules to determine whether an individual is an employee Form W-2 or an independent contractor Form 1099-Misc under common law.
In any employee/independent contractor determination, all information that provides evidence of the degree of control and independence must be considered. 

Social security and Medicare taxes should not be withheld on wages paid to: 
The taxpayer's parent. EXCEPTION: Count these wages if both the following conditions apply:
1. The parent cares for the taxpayer's child who is either of the following.
  • Under the age of 18, or
  • Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter.
2. The taxpayer's marital status is one of the following.
  • Divorced and not remarried,
  • Widow or widower, or
  • The taxpayer is living with a spouse whose physical or mental condition prevents the taxpayer from caring for the taxpayer's child for at least 4 continuous weeks in a calendar quarter.

Who is considered a household employee?

https://ttlc.intuit.com/replies/5116980

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1 Reply
viktoriyab11
New Member

My daughter paid me to watch her grandson in her home. Does she need to give me a W-2? Am I correct that I do not need to pay FICA or Medicare taxes as I am a parent?

Yes, she will gave you W-2 form. However, it is different rules to determine whether an individual is an employee Form W-2 or an independent contractor Form 1099-Misc under common law.
In any employee/independent contractor determination, all information that provides evidence of the degree of control and independence must be considered. 

Social security and Medicare taxes should not be withheld on wages paid to: 
The taxpayer's parent. EXCEPTION: Count these wages if both the following conditions apply:
1. The parent cares for the taxpayer's child who is either of the following.
  • Under the age of 18, or
  • Has a physical or mental condition that requires the personal care of an adult for at least 4 continuous weeks in a calendar quarter.
2. The taxpayer's marital status is one of the following.
  • Divorced and not remarried,
  • Widow or widower, or
  • The taxpayer is living with a spouse whose physical or mental condition prevents the taxpayer from caring for the taxpayer's child for at least 4 continuous weeks in a calendar quarter.

Who is considered a household employee?

https://ttlc.intuit.com/replies/5116980

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