[breakingmyback]

Does an individual, not a trade or business, need to file a 1099-misc to another individual ? I can provide specifics if necessary.

[ScottGem]

If you paid them taxable income, yes.

[breakingmyback]

Pardon to my slow response, had to run an errand. The situation is as follows:

We will provide care for an elderly father in lieu of nursing home care at a substantial discount. Another daughter has power of attorney and wishes to issue a 1099-misc for funds dispursed from his personal accounts. Neither of us are a trade or a business and this is an inter-family matter.

[AtlantaTaxExpert]

What you are doing is providing a service for pay. If the amount exceeds $600 per year, then the daughter is correct in issuing the Form 1099-MISC. In fact, it is required by law.

The fact that it is an inter-family matter is irrelevant, especially in the eyes of the IRS.

[ScottGem]

Same answer. Sounds like the daughter wants to keep everything above board and since she's responsible for his finances, expects to be able to deduct the care as medical expenses. Therefore, she needs to issue 1099s to show how the funds were paid out.

[breakingmyback]

Thank you Scott and 'Lanta for your verification of what I already suspected.
Actually, I am the in-law husband, an only child literally appalled at the dysfunction and back-biting involved with the aforementioned family of six
Siblings: the tax issue was clouded by infighting and a perceived " I'll screw
you" grudge match which has unfortunately put the old boy's care on the back
Burner at some point. I only carried through with the question because I am currently an independent contractor drywall finisher, and everyone knows what a bunch of reckless scum we are! Of course, I , and other native construction CRAFTSMEN are in no way aided by the rash of unscrupulous employer-contractors who conspire with illegal aliens to literally steal the food
(and tens of thousands of dollars ,in my case) from our babies mouths. Desperation can make fools of us all.
In fact, I just turned an automobile repossessor from my door! Fortunately,
He was a polite young man and we parted on an amicable note. Well, this sounds like fodder for another website unless anyone is interested in real
Unbiased information on fraudulent I.D. and how easily illegals cheat the
System.
Perhaps more useful would be the old addage that friends-or family-and
Business rarely mix. Thanks again, boys. You are very kind. Must sign off
For now. Impressed with the site!

Cordially,

BreakingMyBack
AKA Willie the Taper
St. Paul, MN

[AtlantaTaxExpert]

Glad to help!