ILLMAS Posted February 16, 2015 Report Share Posted February 16, 2015 TP recieved a 1099 (line 7) from the baby sitter for free baby sitting, is this considered SE income or other income? Also can the TP offset it for childcare expense? Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted February 16, 2015 Report Share Posted February 16, 2015 Super opportunity for Sch C- lots of work - if childcare in home but best tax shelter out thee all due to Bill Clinton If she babysits in parent's home - not so good but at least soc sec credits... Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 16, 2015 Report Share Posted February 16, 2015 Not sure we have enough facts to respond. Is the baby sitter a business (as opposed to an occasional in the home thing)? If so, is this more of a cancelled debt thing - which should not be on a 1099M? Or is it this a situation where the TP worked for the "baby sitter" in exchange for "free" baby sitting? Need more facts. 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 16, 2015 Author Report Share Posted February 16, 2015 "TP worked for the "baby sitter" in exchange for "free" baby sitting?" Nanny owed TP some moola and paid it back by baby sitting. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 16, 2015 Report Share Posted February 16, 2015 Barter Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 16, 2015 Author Report Share Posted February 16, 2015 That is what I was thinking, however the Nanny already issued a 1099. Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 16, 2015 Report Share Posted February 16, 2015 "TP worked for the "baby sitter" in exchange for "free" baby sitting?" Nanny owed TP some moola and paid it back by baby sitting. So the Nanny owed the TP some money and did "free baby sitting" and the Nanny issued a 1099 to the TP? The facts do not fit together. The Nanny did not work for free. The Nanny worked for the money that the Nanny received - previously. I still fail to see the need for the Nanny to issue a 1099. The TP, if this was a business transaction, may be warranted in issuing a 1099 - but not the other way around. 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 16, 2015 Report Share Posted February 16, 2015 (edited) Nanny probably should issue a 1099 to Mom if Mom is an IC and Mom's compensation from Nanny/work for Nanny was an expense to Nanny's business. If Nanny didn't use Mom in Nanny's trade or business, then no 1099 needed from Nanny to Mom. Mom issues a W-2 to Nanny if Nanny's a household employee of Mom. Mom has childcare expenses documented by that W-2. Mom may also have SE income if your explanation of the 1099 to Mom has a business purpose. Edited February 16, 2015 by Lion EA 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 17, 2015 Report Share Posted February 17, 2015 Mom May issue 1099 if Nanny does not rise to the level of employee. We don't know if babysitting was in Moms home or Nanny's. Quote Link to comment Share on other sites More sharing options...
Randall Posted February 17, 2015 Report Share Posted February 17, 2015 I'm not sure I understand the whole situation. TP 'worked' for babysitter. Babysitter borrowed money from TP. Babysitter paid TP back (not with money) but with free babysitting. What is this work TP did for babysitter? You said TP worked in exchange for babysitting, but you also said babysitter owed TP money and paid back with free babysitting. Was it a job with a W2? Then did boss borrow from employee? And boss pay back loan with free babysitting? I'm wondering if boss (babysitter) issued a 1099 to try to run through expenses on his/her business? Like others said, maybe it is a barter. But it doesn't sound like the 1099 should have been issued. If it was just a loan, what's the difference in paying loan back with money or free babysitting. No 1099, just a loan payback. 1 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted February 17, 2015 Report Share Posted February 17, 2015 I'm confused too. Taxpayer did work....but didn't get paid in money. Got services instead. I'd do s C .....and expense it all as "barter expense". Or...issued in error. We can't take the value of services as charity....babysitter should not take the value of her service as an expense. 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 17, 2015 Author Report Share Posted February 17, 2015 Getting more details, will post when available, thanks everyone. Quote Link to comment Share on other sites More sharing options...
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