State issued 1099 MISC

[taxjungle]

A new client came in last year. He said the State will be issuing her a 1099 Misc for taking care of her elderly mother in her (the taxpayer's apartment). The taxpayer had been already taking care of her even before this came up. TP doesn't care for any others.

MY QUESTION IS: How is this 1099 Misc income to be reported?
1. Other income on Line 21?
2. Sch C / SE?
3. Foster Care payments?

Would appreciate your thoughts and references. Thank you in advance

[TMAC]

1099 or W-2

Wait 'til you get the 1099. May be something else. In CA caregivers usually receive W-2's from state agencies for caring for relatives/non relatives in own home.

[POCAHONTAS]

deductible expenses for w-2

So TMAC if you get a W-2 for for being a caregiver can you deduct mileage, food and other expenses on Form 2106.
Thanks

[taxjungle]

State Issured 1099 MISC

The taxpayer will be receiving a 1099 MISC, not a w-2, therefore my question above.

[POCAHONTAS]

depends

I am not 100% sure so you may have to research some more, but I think it depends on which box of the 1099 the income is reported, If it is in box 3 and 8 of the 1099 Misc then it is reported on line 21, but it seems rather odd that the state is giving her a 1099 Misc and not a W-2, perhaps each state is different, I have never had a caregiver bring in a 1099 misc it has always been a W-2. (If the person is providing childcare then that is when the state has issued a 1099 Misc)

[JG EA]

You have to call the state. In some situations it is possible to exclude the payment altogether. But you may wonder why issue 1099's when this is so? It was explained to me that not all are excluded, they issued to all and the ones that can exclude it do so. If I remember correctly there was a code section or terminology that could be attached to a schedule. When calling the particular state they were able to describe the exclusion. Sorry I can't remember anything more particular but call or rather have your client call if they won't talk directly to you.

HA. Just found my own original post about this - I remembered then!

http://www.thetaxbook.com/forums/showthread.php?t=5350&highlight=state+1099