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Carlton11
January 19, 2023
Solved

Deducting Payments I received

  • January 19, 2023
  • 2 replies
  • 0 views
I received a 1099-NEC for caregiving but I spent all the money in addition to my own money to take care of the disabled adult. Looking at Schedule 1 can I deduct that amount on line 8a? Because the money was paid out  to take care of him, and not to me
    Best answer by JamesG1

    1099-NEC income cannot be deducted by an entry on line 8a of the Schedule 1 of the IRS Form 1040.

     

    The IRS presumes that 1099-NEC income is self-employment income that is subject to:

     

    • Self-employment income computed on Schedule SE. as well as 
    • Income tax computed on IRS Form 1040.

    The IRS expects 1099-NEC income to be reported on a Schedule C of the IRS Form 1040.  If you had ordinary and necessary business expenses, they may be deducted on Schedule C.

     

    It is possible that your income could be offset entirely by ordinary and necessary business expenses reported on Schedule C.

     

    See also here.

     

    @Carlton11

    2 replies

    A
    Anonymous_
    Employee
    January 19, 2023

    Please provide more details. Are you a professional caregiver? is the adult related to you?

      C
      Carlton11Author
      January 19, 2023

      I am Being Paid caregiver payments by my divorced spouse. the Adult is my disabled son who is 23 Years old    

      C
      Carlton11Author
      January 19, 2023

      I am being paid through a payroll company because I did not want to give him my banking Information 

      J
      JamesG1Answer
      January 19, 2023

      1099-NEC income cannot be deducted by an entry on line 8a of the Schedule 1 of the IRS Form 1040.

       

      The IRS presumes that 1099-NEC income is self-employment income that is subject to:

       

      • Self-employment income computed on Schedule SE. as well as 
      • Income tax computed on IRS Form 1040.

      The IRS expects 1099-NEC income to be reported on a Schedule C of the IRS Form 1040.  If you had ordinary and necessary business expenses, they may be deducted on Schedule C.

       

      It is possible that your income could be offset entirely by ordinary and necessary business expenses reported on Schedule C.

       

      See also here.

       

      @Carlton11

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