Is pay for caring for a sick spouse subject to SE tax?

[mj46]

My client received a Form 1099-NEC for pay she received for the care of her spouse. I know it is taxable income but I'm not sure about self-employment tax.  She is not in a business, therefore no self-employment tax. Am I correct?

[Karl]

Who was the 1099-NEC from? An insurance company, short-term disability...? IHSS will let you exclude the income from income tax for medical care of certain family members in your home (Notice 2014-7), but that usually doesn't get reported on a 1099-NEC.

There might be some exceptions based on the insurance/pay arrangement, but it sounds subject to SE tax to me.

[George4Tacks]

Does IRS Notice 2014-7 apply? 

[Terry53029 · Accepted solution]

Her is a link from IRS., but be sure notice 2014-7 does not apply.

https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-....