Specialty Services Contact - Self-Employed 2025

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Some ways to prove self-employment income include: Annual Tax Return (Form 1040) This is the most credible and straightforward way to demonstrate your income over the last year since its an official legal document recognized by the IRS. 1099 Forms. Bank Statements. Profit/Loss Statements. Self-Employed Pay Stubs.
Housekeepers and senior caregivers who are not companions are classified under the Fair Labor Standards Act (FLSA) as hourly employees entitled to minimum wage and overtime (non-exempt).
Who needs to issue 1099s? You must issue a 1099-MISC if you paid a non-employee individual or business (other than an incorporated business) $600 or more to provide services in the course of your trade or business. This only applies to payments made for a trade or business. It does not include personal payments made.
That 30% rule of thumb comes from the fact that self-employment income is taxed at an additional 15.3% to make sure that self-employed people still pay Medicare and Social Security tax.
You must also pay your share of payroll taxes, such as Social Security and Medicare taxes. Lastly, its important to remember that you must issue a 1099 to any caregiver who was paid more than $600 during the tax year.

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Withholding and paying caregiver taxes Neither you nor the caregiver will have to pay Medicare or Social Security taxes if the caregivers wages are below the federal threshold. For the 2023 tax year, if you paid a caregiver $2,600 or more, you must withhold and pay Medicare and Social Security taxes on their wages.
However, you are seldom required to send Form 1099-NEC to a caregiver. Business taxpayers use form 1099-NEC to report nonemployee compensation. You are not a business taxpayer just because you hire an in-home caregiver. Therefore, you typically would not need to file a 1099-NEC.
Generally, you are self-employed if any of the following apply to you. You carry on a trade or business as a sole proprietor or an independent contractor. You are a member of a partnership that carries on a trade or business.

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