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

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  • beck
    Member
    • Dec 2005
    • 68
    #1

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

    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
    Tags: None
    • beck
      Member
      • Dec 2005
      • 68
      #2
      Someone has to have some type of advice/info. Burton....where are you?

        Comment

        • taxxcpa
          Senior Member
          • Nov 2007
          • 978
          #3
          It seems that this would be self employment--Schedule C.

          Maybe she could take the standard bicycle mileage allowance.

            Comment

            • Burke
              Senior Member
              • Jan 2008
              • 7068
              #4
              Originally posted by 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
              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.

                Comment

                • Traveling EA
                  Member
                  • Jan 2013
                  • 99
                  #5
                  Originally posted by taxxcpa
                  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.

                    Comment

                    • beck
                      Member
                      • Dec 2005
                      • 68
                      #6
                      Originally posted by Traveling EA
                      or Section 179 or depreciate the bike.
                      LOL...good one

                        Comment

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