1099 requirements for individuals

[SensibleandHourly]

Hello, 

I have a new client who is over 90 and who paid a lady to keep her flower beds maintained last summer. She was curious if she needed to provide a 1099 to her, even though she is not a business owner. The clearest answer I could find was that it was encouraged but not required for an individual. 

Any other thoughts that may apply? 

Thanks a million, 

Dawn 

[Just-Lisa-Now-]

Only businesses issue 1099s for services, is it a rental property that rises to the level of a trade or business?

[BobKamman]

Question should be whether a W-2 is required.  IRS says "Household employees include housekeepers, maids, babysitters, gardeners, and others who perform household work in or around your private residence as your employee."   https://www.irs.gov/taxtopics/tc756#

[TaxGuyBill]

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@SensibleandHourly wrote:

The clearest answer I could find was that it was encouraged

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I'm curious where you saw that.

You might want to look that the Instructions for Form 1099-MISC/NEC and look under the subheading "Trade or business reporting only".

https://www.irs.gov/instructions/i1099mec#en_US_202401_publink100019786

But a was pointed out, the worker could be classified as a Household Employee.

[SensibleandHourly]

Hello, not a business or rental. 

[SensibleandHourly]

Great question, but no, not an employee. 

[SensibleandHourly]

Good morning, I'd have to try and and find that article again. It was an answer on a Turbo Tax support page but older, maybe 2019.

In this case, just a sweet older lady who paid a neighbor to weed and mulch her flowerbeds throughout the summer. She didn't keep track, but estimated $500 or so. I think she is also concerned because she is getting more frail and would like to find someone to do some housekeeping/shopping this upcoming year and that could be a few hundred a month, and what might her obligations be then. 

I always appreciate everyone's reply, thank you!! 

[Terry53029]

Following is the IRS definition of a household employee.

"You have a household employee if you hired someone to do household work and that worker is your employee. The worker is your employee if you can control not only what work is done but how it is done. If the worker is your employee, then it does not matter whether the work is full time or part time nor that you hired the worker through an agency or from a list provided by an agency or an association. It also does not matter whether you pay the worker on an hourly, daily, weekly or by the job."