Do I need to file a 1099 for a caregiver?

The 1099 form is complicated, and some people may be wondering if they should file a 1099 form a caregiver. Increasingly, families and individuals are relying on independent caregivers, especially amid the novel coronavirus pandemic. If your family recently switched over from a nursing home provider to an independent worker, you may be wondering if you need to generate a 1099 form for caregiver. The answer, like many things related to the 1099-MISC, is complicated.

No matter what your household employment needs are, Advanced Micro Solutions can help. If you employ an independent caregiver for yourself or an aging parent, you likely have a few other household employees – think landscapers, house cleaners, or people who plow your driveway every winter. If this is the case, you’ll need some type of software solution to get your tax filings in order. The 1099/W-2 forms filer is an excellent option for household employers who don’t need a full payroll system. Whether you’re supplying a 1099 for a caregiver or trying to figure out which household employees need tax filings, AMS is here to help.

Preparing a 1099 for a Caregiver

There are special rules for workers who perform in-home services for elderly and/or disabled people. Here’s what the IRS says on the matter:

If the caregiver employee is a family member, the employer may not owe employment taxes even though the employer needs to report the caregiver’s compensation on a Form W-2… However, in some cases, the caregivers are not employees. In such cases, the caregiver must still report the compensation as income on his or her Form 1040 or 1040-SR, and may be required to pay self-employment tax depending on the facts and circumstances.

The IRS goes on to provide some examples for when a person does or does not need to provide a 1099 or W-2 form to an independent caregiver. In most cases, however, you should plan to distribute one of these forms at the end of the year. This will also help with your other end-of-year taxes. Preparing to distribute a 1099 or W-2 means recording essential payroll information, which you’ll need to use for other forms of reporting.

Get the Support You Need with Advanced Micro Solutions

If your tax filing and wage reporting needs are more extensive, we have the add-on tools you need to complete your accounting software. From a payroll product to a more extensive forms filer, AMS offers a variety of services to best suit the needs of your household, business, or accounting firm. Our modular system allows users to only invest in the tools they need, allowing them to curate a customized suite without the price tag of a personalized system. If you think your home or business could benefit from some additional tax and wage support, consider any of our following add-on tools.

Whether you’re filing a 1099 for a caregiver or expanding your own household employment needs, AMS has the solution.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.