Seattle, WA asked in Tax Law for Washington

Q: I am a caregiver for adult disabled child. I am paid by the state. I normally receive a 1099 and file that as

Nontaxable income but this year i received a w2. Do i file the same way or do i owe income tax on this?

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1 Lawyer Answer
Matthew M Montoya
Matthew M Montoya
  • Tax Law Lawyer
  • Lone Tree, CO

A: The most important question is why believe the 1099 income was not taxable. IRS publication 525 specifically lists the kinds of income that are not taxable. You may be able to get a caregiver tax credit if you are a family member or "qualifying relative."

1099 income and W-2 income are both forms of income, the 1099 just means you own your own business (as an independent contractor) while a W-2 means you're an employee.

Here's a short Q and A on the IRS website about Self-employment tax and employer withholding tax on caregiver income.

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