I mailed in my taxes in March. The only income I received was from babysitting. I am a nanny 5 days a week in?

Question

someone else's home. I never received any form from them. I used turbo tax, and claimed 8,000 from this couple I nanny for. I also earned other income from another family I nannied for, but I didnt receive a form from him either, but I just want to work on this 8,000 from the other family. I also claimed the earned income tax credit. I am a single mom of a toddler. I live with a roomate, no child support or other income. The eic was 2,955. Today the irs mailed me back my tax forms I mailed in, and a note for me to send proof of my income for the eic on a 1099 misc form. I picked up the 1099, but it looks as if my payers needed to fill it out, and send it to me by Jan 31st. They already mailed in there taxes. I also read that they will get penalized for not sending me the form. I know they also claimed somewhere in there taxes the 8,000 they paid me. What do I need to do? Is there a way to fill out the 1099 form, and only I send it in? Can this family I work for still send in the 1099 form, even though they already sent in there taxes? How much would this family I babysit for be penalized? Anyone know how much I would need to pay in? Would I be considered a late tax payer now and have to pay a penalty? Thank you so much!!!

Update:

Yes, I did claim the income from the other family...but I assume the answer will be the same from this 8,000 im working on, and his.

Anonymous · Accepted Answer

Go to IRS.GOV and start reading publication 926.

Your employer never read it either.

Your employer hired you to work in their home.  You were an employee, not an independent contractor.  They CAN'T fill out the 1099-Misc for you as it's the wrong form.

By law, once they paid you more than $1600, they were required to withhold fica/mc taxes from your pay *and* issue you a W-2.  That W-2 is your proof that you worked and were entitled to claim EIC.

Due to fraud (even after paying 15% in payroll taxes you were still getting a refund), the IRS has to ask to see proof of income.  Guess what, you don't have it.

Contact your employer and ASK them for your W-2.  They are subject to a payroll audit--and their penalties are 100% of what they should have withheld and send in that they didn't.

Anonymous · Answer

Have the family you work for prepare the correctly filled in 1099 for you. Then you can make a copy and send it back with the letter you received from the IRS requesting proof of your income on a 1099 form. 

If you don't provide the IRS with the requested 1099 in time, they will disallow your entire $2,955 Earned Income Credit. You will not be considered a late tax payer now or have to pay a penalty. (unless they disallow the EIC)

The family you work for can still send in the 1099 form even though they already sent in their taxes. They should only be penalized a maximum of $50 for sending in the 1099 form late.

Judy · Answer

vb as usual gives you the right answer, and good advice.

One more thing though.  You say you also earned other income from another family, but "just want to work on this $8000" - if you mean you only claimed the $8000 and not all of your income, you have also done something illegal by only claiming part of your income - you need to claim it all.  And if you are claiming EIC based on claiming only some, not all, of your income, your claim is fraudulent and you could be banned from getting EIC for several years even if you otherwise qualify.  So if you didn't claim all of your income, you'd be wise to amend your return now and correct it.

Trending News

I mailed in my taxes in March. The only income I received was from babysitting. I am a nanny 5 days a week in?

3 Answers