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GAFF
Alabama Fan
Georgia
Member since Aug 2010
1926 posts

Babysitter (Niece) received 5071c letter. Never Filed A Return

My niece watches my two kids some days to help us out while we work. I claimed this amount (roughly $2,500) when I filed my return. This was her only income and well below the $12,550 minimum so she didn’t file a return. Today she received a 5071c letter asking her to verify her ID because the IRS suspected someone used her info to file a fraudulent return. Could this be a result of me listing her on my return or something else? It says failure to verify could result in a delay of her receiving her refund (which she won’t have) and I’ve already received my return. Just trying to see if this is because of me or if someone got ahold of her info.


Chad504boy
4 posts
Member since Feb 2005
154765 posts

way to stick it to your niece.


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1290
Strannix
USA Fan
Banana Republic
Member since Dec 2012
42311 posts

Lol you 1099ed your niece babysitting????


Tigerlandlegend2000
Southeastern LA Fan
LAPLACE
Member since Jan 2022
9 posts

Fairly sure she owes SE tax. Anything over 600 bucks so you putting her info out there raised the flag.


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830
The Boat
Duke Fan
Tim McGraw Country
Member since Oct 2008
147466 posts

Solid troll


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180
LSUBogeyMan
LSU Fan
Member since Oct 2021
779 posts

If you did this to my kid, I’d be more than pissed.


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820
GAFF
Alabama Fan
Georgia
Member since Aug 2010
1926 posts

Ok, so maybe I fricked up. I thought as long as income was below the standard deduction no return was required? So she has to file a return when she only made $2500??


Clint Torres
New Orleans Pelicans Fan
Member since Oct 2011
2366 posts

JFC


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271
Chad504boy
4 posts
Member since Feb 2005
154765 posts

quote:

Ok, so maybe I fricked up. I thought as long as income was below the standard deduction no return was required? So she has to file a return when she only made $2500??




i may not be the best uncle but i've never 1099'd any of my nieces and nephews in their life.


jorconalx
LSU Fan
alexandria
Member since Aug 2011
7863 posts

quote:

Lol you 1099ed your niece babysitting????


I’ve paid my nephew at least 2k doing lawn work and odd jobs on my property. I can’t imagine 1099ing a kid you pay to do stuff around the house. Lol OP is a dick.


GAFF
Alabama Fan
Georgia
Member since Aug 2010
1926 posts

Although it sounds dickish, this wasn’t intentional. Her Mom (my sister) knew I was doing this. Guess neither of us consider it as self employment and thought it’d fall under the minimum income limits on filing. Having said that what is the best course of action? I assume me filing an amendment would raise more red flags than there already are? Does she need to file a return? What are the penalties for filing late?


Turftoe
New Orleans Saints Fan
Denver
Member since Mar 2016
3105 posts
 Online 

This some Busch league level shite right here


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420
kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
100423 posts

quote:

Lol you 1099ed your niece babysitting????


My first thought.


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260
TigerAlum1982
LSU Fan
Member since Sep 2011
1339 posts
 Online 

If she owes anything at all, you need to pay it. That was downright stupid of you


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720
BottomlandBrew
LSU Fan
Member since Aug 2010
24987 posts
 Online 

You better pay that girl what she has to pay to Uncle Sam, and you better pay it in cash. Side-hustles like baby sitting can be considered self employment, and the minimum reporting amount is $400, if my quick google-fu is correct.

quote:

There are some exceptions to the gross income filing requirement. The most common one is self-employment. If you have any self-employment income, such as freelancing, gig work or any "side hustles," this income is usually reported on a 1099-MISC form. You may not receive a 1099-MISC form in some cases. Regardless, you need to file a tax return if your net income for the year (income after self-employment related expenses) was at least $400.


Source


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110
cfotiger
LSU Fan
Baton Rouge
Member since Oct 2011
609 posts

Yep, she needs to file. While she will not owe any income tax, she will owe self employment tax (social security and medicare tax) on the $2,500. It will cost her about $375 in tax plus penalty and interest. The late filing penalty caps at 25%, but there is no cap on the late payment penalty and interest. All in all, penalty and interest may cost another $125 or so, depending upon which year it was she didn't file.

By the way, you really should have filed a W-2 and paid her social security and medicare taxes for her.


21JumpStreet
Colorado Fan
Member since Jul 2012
13437 posts
 Online 

Damn, you suck


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110
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
38247 posts

Why the hell did you claim $2500 in babysitting, let alone from your niece?


GAFF
Alabama Fan
Georgia
Member since Aug 2010
1926 posts

quote:

Why the hell did you claim $2500 in babysitting, let alone from your niece?


Cause it’s a $2500 CREDIT that I thought wouldn’t effect my niece. I’ll pay her tax and penalty and still come out to the good.


makersmark1
Auburn Fan
earth
Member since Oct 2011
12453 posts
 Online 

quote:

By the way, you really should have filed a W-2 and paid her social security and medicare taxes for her.


She would not pass the tests for independent contractor.

You were here only client.
The work had to be done when and where you wanted it done.

You made things complicated.
Now they will look closely at your return too.


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