Cash "under the table"

absweetmarie
Fri, 09 Mar 2012 10:32:19 +0000

GTAlum,

I wouldn’t think the elderly couple would have to file paperwork (i.e., a 1099-misc form showing your D as an “independent contractor”). I’m not a tax expert, so don’t quote me. My recommendation is, if your D received money for services rendered, she should report it under other income. It is unlikely the IRS is going to come searching for an associated 1099 (this would fall under the “small potatoes” exemption, I believe ;)). Babysitting income, btw, does need to be reported (at least the IRS says it should be!).