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Level 2
posted Apr 7, 2024 5:24:26 PM

pay daughter to clean house and do yard work

Hello TT community,

 

I am self-employed and retiring, I paid my daughter to clean my house and do yard work over the year.  I didn't pay her out of my self-employment income and withdrew funds from my IRA account. Does she need to file a 1099K? Do I need to file a 1099k myself too? Where must I enter this in the Turbo Tax home and Biz. I do not consider this to be my business expense but rather a personal expense from my IRA withdrawal.

 

thank you.

Pang

 

 

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1 Replies
Expert Alumni
Apr 8, 2024 2:40:25 PM

Your daughter may be required to file an IRS 1040 income tax return.  The 2023 filing requirements may be found here.

 

If you answer "Yes" to any of the questions below, you may need to file a Schedule H Household Employment Taxes.

 

  1. Did you pay any one household employee cash wages of $2,600 or more in 2023?
  2. Did you withhold federal income tax during 2023 for any household employee?
  3. Did you pay total cash wages of $1,000 or more in any calendar quarter of 2022 or 2023 to all household employees?

Schedule H taxes are reported under Personal, Other Tax Situations and Nanny and household employee tax in TurboTax Desktop Home & Business.

 

This IRS FAQ states that a payment settlement entity (PSE) must file IRS Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year.