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May 8, 2020
Question

How do I submit income given to me by my daughter. For helping her look after my grand- kids?

  • May 8, 2020
  • 1 reply
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I don't have a business.  I didn't charge her.

1 reply

DavidS127
May 8, 2020

It depends on the circumstances.

 

First, if your daughter didn't employ you and you didn't charge her, but she gave you money as a gift, it is not taxable income.

 

If on the other hand your daughter did employ you, the income paid to you by your daughter is subject to income tax.  That income may also be subject to Social Security and Medicare tax if all these are true:

  1. the grand kids are living in your daughter's home;
  2. you daughter is widowed, divorced, or her spouse can't care for the children at leas 4 weeks every calendar quarter because of a physical or mental condition; and,
  3. the children are either under age 18 or require the personal care of an adult for at least 4 continuous weeks every calendar quarter due to a mental or physical condition.

In both cases, you daughter should report these payments to you by filing a Schedule H as a part of her tax return, and send you a W-2 that you enter into your tax return.

 

But, if it is necessary for you to report the income without a W-2, you can do that in TurboTax using the following instructions:

 

If the income is not subject to Social Security and Medicare (those three things above are not all true), you report it in the section Income & Expenses>>Less Common Income>>Miscellaneous Income>>Other Reportable Income.  Type the description as Child Care for Grandchildren and enter the amount you were paid in the Amount box.  You won't pay self-employment tax (Social Security and Medicare) on this income.

 

If the income is subject to Social Security and Medicare(those three things above are all true), you report it in the section  Income & Expenses>>Less Common Income>>Miscellaneous Income>>Other income not already reported on a Form W-2 or Form 1099. Answer that you received wages, and then enter the amount as Household Employee Wages on the next screen.  

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