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Discussion Forum Index --> Tax Questions --> Babysitting Payments under WIC
SoCalCPA (talk|edits) said:
| 3 November 2006
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| I have a client who receives payments from the County under the WIC program to babysit their grandchild. The County issues a 1099-Misc. I believe that the payments are includible in taxable income but I'm hoping that they aren't. Foster care payments are not taxable as long as you receive payments for fewer than 5 children, but it appears that this situation is different from foster care. Can someone help me with this?
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Sandysea (talk|edits) said:
| 3 November 2006
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| This sounds like subsidized child care and yes, at least in Florida, subsidized child care payments to individuals are considered to be other income and are issued 1099's from the County/City/State that makes the payments.
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SBCPA (talk|edits) said:
| 3 November 2006
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| I agree with Sandy. In California it is taxable. Depending on the amount you may want to consider if this is a business for profit. You may be able to limit the tax with any expenses directly related. Some agents want SE tax on these funds in audit.
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