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Old 03-12-2015, 12:45 PM
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Household help

I had a housekeeper at the start of 2014. She was to to perform household work (cleaning, food prep, etc.), in exchange for a place to live, however, due to a medical condition, she was not able to perform her duties, although I allowed her to live with me(as a friend) for the balance of 2014. Do I need to file any tax forms for her in 2014? What forms? She had limited income from Social Security and a small pension all of which totaled $14,000 for which she owes no Federal or State income tax for 2014. Please reply asap. Thank you. Bob



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Old 03-12-2015, 11:51 PM
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I had a housekeeper at the start of 2014. She was to to perform household work (cleaning, food prep, etc.), in exchange for a place to live, however, due to a medical condition, she was not able to perform her duties, although I allowed her to live with me(as a friend) for the balance of 2014. Do I need to file any tax forms for her in 2014? What forms?=========>>>>>>>>>so you mean you did not pay a cent to the housekeeper as she was not able to perform her duties, then you do not need to file her return;in general if you have a household employee, you may need to withhold and pay social security and Medicare taxes, pay federal unemployment tax, or both. You do not need to withhold federal income tax from your household employee's wages. But if your employee asks you to withhold it, you can. So, If you need to pay social security, Medicare, or federal unemployment tax or choose to withhold federal income tax. If you Pay cash wages of $1,900 to an employee older than 18 at any time in 2014 or more in 2014, then You Need To Pay Employment Taxes.You need to Pay FUTA taxes if the employee's cash wages are $1k or more in any single quarter. For example, if you paid per quarter, $800 in Q1, $700 in Q2, $900 in Q3, and $800 in Q4, then no FUTA is due. If any one of the those quarterly amounts was $1k or more, then FUTA would apply to the whole year.
Pay FUTA until the nanny reaches $7000 in earnings. After $7000 is reached, you no longer pay past this amount.in your case, There are special provisions for providing housing for elderly. you must charge fair-market rent that is taxable income to you or issue a 1099 for the fair market value of the rent, which is taxable income to her. Unless you receive rent from her or pay her wages( I mean to let her perform household work (cleaning, food prep, etc.), in exchange for a place to live for her) , then you may need to file form 709 aslongas the market rent value exceeds $14k for 2015 as $14k exceeds the annual gift tax exemption amount of $14k.

She had limited income from Social Security and a small pension all of which totaled $14,000 for which she owes no Federal or State income tax for 2014==============>>>>>correct; as mentioned above; she does not need to file her return unless her employer withheld taxes from her salary;she receives the Earned Income Credit or etc.



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