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tmm1962 Asked May 2020

Does family caregiver who is living in parent's residence file 1099-MISC or W2?

The family trust is paying a family caregiver to care for parent in Florida. She is living in parent's house. Her room and board is provided by parent. Does the trust file 1099-MISC or W2 for her?

worriedinCali May 2020
She’s not an employee. She’s a daughter being paid to take care of her parents through a family trust. The rules are very different for family caregivers. She can be issued a 1099-MISC.
FloridaDD May 2020
I thought the exception for no W-2 reporting only applied to children under age 21.  See  https://www.irs.gov/publications/p926

Table 1. 

I think a W-2 may be required here
JoAnn29 May 2020
I agree. She is an employee so a W2. Hopefully the trust is deducting for taxes and deducting/contributing towards SS.

1099s are only used for interest earned. Like a bank acct, investments and annuities. Not for employee wages.

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