Self Employment income Reported as Other Income

This is in response to a fairly old post that I feel is worth resurrecting. The post was: 2007 Self Employment Income Reported as "Other Income", posted March 4 and found here:

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The IRS recognizes family caregivers as a special case and forgoes SE taxes if certain standards are met.

It appears that in this case the taxpayer should have been reporting this as "Other Income" rather than Schedule C income all along.

A quote from the IRS source linked below:

"Special rules apply to workers who perform in-home services for elderly or disabled individuals (caregivers). Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the elderly or disabled individuals and these individuals have the right to tell the caregivers what needs to be done. These services may or may not be provided by a family member. If the caregiver employee is a family member, the employer may not owe employment taxes even though the employer needs to report the caregiver's compensation on a Form W-2."

Further examples include income reported on a 1099-MISC.

IRS source:

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jay_wiedwald
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