1099 Misc should client issue one or not

[photoman]

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I have an individual 1040 client that paid a lady to watch their children . My client paid this individual about 3000. We put this on the 2441 and have the social , etc information on this individual . My clients children are the only kids she watches and has ask my client if she is going to issue a 1099 to her.

Is an individual 1040 client required to issue a 1099 in a situation like this.

[Possi]

Your place or mine?

Were the children taken to the childcare? Or did the childcare provider come to the children's house?

If the children were taken to the childcare provider's house, then no, your client does not issue a 1099.

If the provider came to the taxpayer's house to babysit, then a W2 to a "household employee" might be required.

[photoman]

I will need to verify if they came to my clients house. If this is the case would my client need to do withholdings, etc and also is there a IRS Pub that gives any advise on this

[AJsTax]

Form H

instructions to form H , household employees will answer most of the questions.
$1700 is a majic number to remember.
And W-2 and fica will be required, the employer can elect to pay fica for the employee.

[photoman]

The children were taken to the providers house

[AJsTax]

Different answer

The children were taken to the providers house

That changes the requirements. The daycare provider is a business and as such should give the parents a form listing the amount paid to her for the year and her EIN or SS.
the parents do not issue a 1099-misc. They are not in a business, they are a customer.

[Possi]

Like

That changes the requirements. The daycare provider is a business and as such should give the parents a form listing the amount paid to her for the year and her EIN or SS.
the parents do not issue a 1099-misc. They are not in a business, they are a customer.

*LIKE*

[photoman]

Thanks, Ron