State pays in-home care as employee/Veterans Affairs shows up as 1099-Misc!!

[beck]

What's up with that?!

My client has been providing in-home health care for a few people through the years. The State of California pays her, takes taxes out and issues a W-2. She started providing some in-home health care for an individual via the Department of Veterans Affairs and they issue her a 1099-Misc checking box 6 (Medical and Health care payments). She is not a nurse or medical professional. What's up??

She rides her bike to the individual's house = no travel expenses.

Any advice you provide will be greatly appreciated.

Thanks,
Beck

[beck]

Someone has to have some type of advice/info. Burton....where are you?

[taxxcpa]

It seems that this would be self employment--Schedule C.

Maybe she could take the standard bicycle mileage allowance.

[Burke]

What's up with that?!

My client has been providing in-home health care for a few people through the years. The State of California pays her, takes taxes out and issues a W-2. She started providing some in-home health care for an individual via the Department of Veterans Affairs and they issue her a 1099-Misc checking box 6 (Medical and Health care payments). She is not a nurse or medical professional. What's up?? She rides her bike to the individual's house = no travel expenses.Any advice you provide will be greatly appreciated.
Thanks,
Beck

The 1099MISC is wrong. It should not be in Box 6, it is Box 7. Non-employee comp, subj to SE tax. Box 6 is for medical benefit payments to institutions and/or foundations. Put on Sche C.

[Traveling EA]

It seems that this would be self employment--Schedule C.

Maybe she could take the standard bicycle mileage allowance.

or Section 179 or depreciate the bike.

[beck]

or Section 179 or depreciate the bike.

LOL...good one