https://www.irs.gov/taxtopics/tc554.html
@jym626 unless I’m reading this incorrect,y…it’s $400.
When filling out/submitting 1099’s we followed this rule: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf Required to report anything over $600. Perhaps we are talking about 2 different things? 1099’s are considered, I believe, “miscellaneous income” and everything I read says minimum requirement to report is $600. Sounds like the “employer” only has to report if they paid the independent contractor over $600, but the “employee” has to report earnings over $400. This is inconsistent. Well, so goes the IRS.
Not really inconsistent. The employee can make over $400 and receive no 1099 if the money came from many employers. A babysitter can make $50 from each of 9 employers, and there will be no 1099s and no taxes owed. It’s that $50 from the 10th employer that will cause taxes due but still no 1099s required.
That makes sense. So in THIS case, the OP would have to submit a 1099- Misc to the IRS and to the employee only if she paid this employee $600 or more. She doesn’t need to worry what the person earned from anyone else.
So who here 1099’s their kids’ babysitter? or their lawn guy? or their attorney? (thats a line item on the 1099)
I was talking about the employee. If they earn more than $400, they are required to file income taxes as self employed…and pay the taxes associated.
Back to Somemom. I think $125 for an overnight is a reasonable amount to pay. This will be very intermittent, right? And on an as needed basis.
Is there anyone you know who might be willing to do this? A recent college grad, or someone like that?
I was talking about the employer. Can see where the confusion lies. Apologies for any confusion.
But that said, just in case, I’d have anyone who is possibly going to do this more than 2-3 times fill out a W-9, so you have the info on hand, and any potential tax issues are addressed up front. All it takes is 5 overnights, or a few, a holiday overnight (would probably pay more for that) and a holiday cash thank you gift and bingo, it triggers the need for the 1099. Sounds like everyone is agreement that $125 sounds fair. Some weekends/holidays might call for a higher amount.
We 1099-'d the babysitter who came to watch the guys when we went out occasionally (i.e., not a regular child care provider). Paid her Social Security, too. When we used family day care when I went back to work, that went through the flexible spending account, so we needed the provider’s tax ID then as well. DH was adamant about being above board.
My DD baby sat for two kids overnight on NYs eve one year. Got paid $200. Kids were little and slept all night long!
To the OP, I ‘senior sit’ for my friends when they go out of town 2-3 times per year. His mother lives next door, is 92, and wants someone close. She’s fine alone, I go over once a day and help her with whatever she needs (pick up the paper from the porch, open something). Once it snowed and I had to do a quick shovel or brush with a broom. She takes me to dinner or to brunch if I take her to church, which she likes and I like (I love going out to breakfast). Mostly she’s just lonely as her son works from home and pops over several times a day, sometimes for lunch or to get something from the grocery store. They always make sure she doesn’t have any appointments (dentist, doctor, hair) while I’m there as she doesn’t drive.
Why do I do this? My friend has been my friend for almost 40 years. They are godparents to my youngest. She lent me her car once when I really needed it. Their TV sucks and the bed isn’t great, but I can live for the 4-5 day stints they need. If I didn’t do it, they could send her to her grandson’s house about an hour away, but that’s not always convenient. I’ve also received a sewing machine from her (I asked to borrow one and she just gave one to me) and a heated serving platter for buffets. Her house is like a big thrift store without price tags, and is she always trying to give me things. She’d really like me to take a big rug hooking frame and all the materials to make a rug. I have no room for it!
I think you should just ask around. Church friends, friends of the relatives she lives with, neighbors, any other service clubs in the area. It sounds like it would just be for a weekend or a few days, so maybe a restaurant gift card as a thank you.
I would find a niece or nephew. If they are not available, then ask around and find a local college student looking for some extra money. Last, if you live close enough perhaps she can stay with you for those occasional nights? Good luck
Totally agree. Ask your friends. There might be some ones who would offer to help you out from time to time. The advantage is…your mom might know some of them.