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Level 1
April 1, 2021
Question

Household Employee Wages

  • April 1, 2021
  • 2 replies
  • 31 views

Hello, couple days ago I've been working on the tax return and get the problem to find the line on the 1040 to enter the HH wages. I have a client, she is watching her grandson in her son's house and her son paid her $6000 in 2020. According to Publication 926, this income is exempt from FICA tax. I went thru all forms and found line 7 on Wages, Salaries and Tips Worksheet, however it says "Wages earned as a household employee (if less than $2,100 and without W2). Should I use this line to enter her wages even if it is more than $2,100? Please help. Thanks in advance.

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2 replies

Level 10
April 1, 2021

It sounds like the son did not prepare her a W-2.? (as required)

In that case I would most likely report it on a Schedule C.

Just-Lisa-Now-
Intuit Community Champion
April 1, 2021

Agreed with Jeff, a W2 should have been issued and payroll taxes been paid.by the payer.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪