My friend wants to give me a gift each time I watch her kids. Do I need to claim it?

[lexielindskog]

She has paid me maybe $600 in cash for this year and I feel like after expenses(toys, craft supplies, ect) I’m still within the $400 range before I have to claim self employment. If she pays me in gifts( gift cards, money towards groceries and gas ect) do I have to claim that since it is a gift?

[Bsch4477 · Accepted solution]

Those are not “gifts” but payment for services rendered and should be reported as income. 

[Dave-S1]

Also, she is required to give you a 1099-MISC reporting the income and submitting to IRS if total amounts paid to you are $600 or more.

[macuser_22]

@Dave S1 - That is not correct.   Only businesses issue 1099-MISC to other business in the course of doing business.  Individuals do not issue 1099-MISC forms.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1099msc_18.pdf">https://www.irs.gov/pub/irs-pdf/f1099msc_18.pdf</a>
"Trade or business reporting only. Report on Form
1099-MISC only when payments are made in the course of
your trade or business. Personal payments are not
reportable."