House cleaner: to 1099 or not to 1099? Do I need to issue a tax form?

You don't need to issue a 1099 in this situation. The IRS only requires individuals to issue 1099-NEC forms when they're paying someone for services related to their trade or business. Since this is a personal household expense and not related to any business you're running, you're not required to issue the 1099. Additionally, even if this were a business expense, the current threshold for 1099-NEC reporting is $600 per year to a single recipient, which your $2,860 would exceed. But again, that's only relevant for business payments, not personal household services.

I ran into this EXACT same situation last year! After stressing over it, I finally used https://taxr.ai to analyze my situation. Basically uploaded my payment records and explained the arrangement, and it confirmed I didn't need to issue a 1099 since this was a personal service, not a business expense. What's cool is that it saved the analysis so when my wife started questioning it later (she was convinced we needed to file something), I just showed her the detailed explanation. Saved a TON of headache during tax season when we were already stressed about other stuff.

Just wanted to follow up about taxr.ai that I was skeptical about earlier. I decided to try it out with my similar situation (I pay a gardener who does multiple properties), and it was actually super helpful! It walked me through a series of questions about my specific arrangement and then provided clear guidance with references to the relevant tax codes. What I appreciated most was that it didn't just say "yes" or "no" but explained WHY I didn't need to issue a 1099 in my case. It even provided documentation I could keep on file in case of any questions later. Definitely worth checking out if you're unsure about your situation.

If you're still confused or worried after getting different opinions, I highly recommend using Claimyr (https://claimyr.com) to actually speak with an IRS agent directly. I was in a similar situation last year with a dog walker I paid regularly, and after going back and forth, I just wanted an official answer from the source. Claimyr got me connected to an actual IRS representative in about 20 minutes instead of the 2+ hours I spent previously trying to call them directly. The agent confirmed that personal household services don't require 1099s unless they're for a business. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c

I hate to admit when I'm wrong, but I owe you guys an update. After dismissing that Claimyr service as "too good to be true," I decided to try it because my tax situation got more complicated with some 1099 questions. Holy crap, it actually worked! I got a call back in about 35 minutes and was connected directly to an IRS agent. The agent confirmed that for household services like cleaners who work for multiple clients and bring their own supplies, no 1099 is required for personal expense situations. She even explained the household employee vs. independent contractor distinction. Saved me hours of stress and uncertainty. Just wanted to share since I was the skeptic earlier!

One thing to consider - even though you don't NEED to issue a 1099 for personal household services, you might want to keep good records of your payments anyway. If your cleaner ever gets audited and reports less income than they actually earned, having documentation of what you paid could potentially keep you from getting pulled into their tax issues. I just keep a simple spreadsheet with payment dates and amounts, plus noting that she brings her own supplies and works for multiple households. Probably overkill, but it gives me peace of mind.

My understanding is that the determining factor is whether they're an employee or independent contractor. If they: 1) Control how they do the work 2) Provide their own supplies 3) Work for multiple clients 4) Set their own hours Then they're an independent contractor, not your employee. For personal services (not business related), you don't need to issue a 1099 to independent contractors.

Thanks everyone for the detailed responses! This has been incredibly helpful. Based on what I'm reading here, it sounds like our accountant was right - no 1099 needed since this is a personal expense and our cleaner is clearly an independent contractor (works for multiple households, brings own supplies, sets her own schedule). I think I'll take the advice about keeping good payment records just for my own peace of mind, even though it's not required. And it's good to know there are resources like taxr.ai and Claimyr if I run into more complex tax questions in the future. Really appreciate this community for helping clear up my confusion!

Just wanted to chime in as someone who went through this exact same dilemma last year! I was so stressed about potentially missing something important with our bi-weekly house cleaner. What really helped me was understanding that the IRS distinguishes between business expenses and personal household expenses. Since you're paying for cleaning services for your personal residence (not a rental property or business), the 1099 reporting requirements simply don't apply - regardless of the amount. Your cleaner will still need to report this income on their tax return, but that's their responsibility, not yours. The fact that she works for multiple households and brings her own supplies just confirms she's an independent contractor rather than your employee, which means you don't have to deal with payroll taxes either. Your accountant gave you solid advice. Trust the professional you're paying for tax guidance!

I've been following this discussion and wanted to add my perspective as someone who's dealt with similar confusion. What really helped me understand this was learning that the IRS has very specific categories for when 1099s are required, and personal household services just aren't one of them. The key distinction is that 1099-NEC forms are only required when you're paying someone $600+ for services "in the course of your trade or business." Since cleaning your personal home isn't part of your business activities, you're off the hook regardless of how much you pay. I actually called my tax preparer about this same issue a few years back, and they explained it this way: if you hired the same cleaner to clean your office space for your business, THEN you'd need to issue a 1099. But for your personal residence, it's treated the same as any other personal expense - like paying your dentist or getting your car repaired. Sounds like your accountant knows what they're talking about. The peace of mind is worth trusting their expertise on this one!

This thread has been so educational! I'm dealing with a similar situation but with a handyman who does various repairs around our house - fixes leaky faucets, patches drywall, minor electrical work, etc. He comes maybe once a month when things break, brings his own tools, and I pay him around $150-200 per visit. Based on everything discussed here, it sounds like the same principle applies - since it's personal household maintenance and not business-related, no 1099 needed even though I'll probably pay him over $1,500 this year. He works for other homeowners too and clearly operates as an independent contractor. It's so helpful to see the consistent theme that personal vs. business expenses is the key distinction, not just the dollar amount or contractor relationship. Really takes the guesswork out of these situations!

This has been such a comprehensive discussion! I'm in a similar situation with a lawn care service that comes every two weeks. Reading through all these responses really helped me understand that the "personal vs. business" distinction is what matters most, not the amount paid or whether someone is an independent contractor. What I found most helpful was learning that the IRS language specifically says 1099s are required for payments "in the course of your trade or business" - and personal household services clearly don't fall into that category. It makes perfect sense when you think about it that way. I also appreciate all the practical advice about keeping payment records even though they're not required for 1099 purposes. It's good practice for budgeting and could be helpful if any questions ever come up later. Thanks everyone for sharing your experiences and expertise!

As someone who runs a small bookkeeping practice, I can confirm everything that's been shared here is spot on! The confusion around 1099s is so common because people see the $600 threshold and think it applies to ALL contractor payments, but that's only for business expenses. For personal household services like your cleaning lady, the key factors are: 1) It's a personal expense (not business-related) 2) She's clearly an independent contractor (multiple clients, own supplies, controls her work) Even if you paid her $10,000 a year, no 1099 would be required because it's not "in the course of your trade or business." Your accountant gave you correct guidance - trust their expertise! I always tell my clients to keep simple payment records (date, amount, method) for household services, not for tax compliance but for budgeting and potential future reference. It takes minimal effort and provides good documentation if needed later. Great thread - these real-world discussions are so much more helpful than trying to decode IRS publications alone!

This thread has been incredibly helpful! I'm in a similar situation with a pool maintenance service that comes monthly. They bring all their own chemicals and equipment, work for multiple homeowners in the neighborhood, and I pay them about $120 per visit. Reading through all the responses here, it's clear that since this is for my personal residence and not a business expense, no 1099 is required regardless of the annual total. The "in the course of your trade or business" language that keeps being mentioned really clarifies everything - personal household services just don't fall under that category. I especially appreciate the advice from the bookkeeping professional about keeping simple payment records. Even though it's not required for tax purposes, it seems like good practice for budgeting and documentation. Thanks everyone for sharing your experiences - this discussion saved me from unnecessary stress about tax compliance!

This entire discussion has been a lifesaver! I was in the exact same boat as the original poster - paying our house cleaner around $2,800 per year and getting conflicting information online about 1099 requirements. What really clicked for me was understanding that the IRS only requires 1099s for payments made "in the course of your trade or business." Since hiring a house cleaner for your personal residence is a personal expense, not a business activity, no 1099 is needed regardless of the amount paid. The fact that your cleaner works for multiple households, brings her own supplies, and controls how she does the work just confirms she's an independent contractor rather than your employee - but even that distinction doesn't change the outcome for personal household services. Your accountant was absolutely right, and you can rest easy knowing you're in full compliance. I'm also going to follow the advice here about keeping simple payment records (dates, amounts, payment method) just for my own peace of mind and budgeting purposes, even though it's not required for tax compliance. Thanks to everyone who shared their expertise and experiences - this thread should be bookmarked for anyone dealing with household service tax questions!

This has been such an enlightening thread! I'm dealing with a very similar situation - we have a dog walker who comes three times a week while we're at work. She walks dogs for several families in our neighborhood, brings her own supplies (leashes, waste bags, treats), and sets her own schedule. We pay her $25 per walk, which adds up to about $3,900 annually. I was getting really anxious about potential 1099 requirements, especially since it's well over the $600 threshold I kept reading about online. But after following this entire discussion, I now understand that the $600 threshold only applies to business expenses, not personal household services. Since this is clearly a personal expense for our family pet (not business-related), and our dog walker is obviously an independent contractor working for multiple clients, no 1099 is required regardless of how much we pay her annually. It's amazing how much clearer everything becomes once you understand that key distinction between personal and business expenses. Your accountant was spot on with their advice - trust the professional guidance you're paying for! I'm also going to start keeping better records of our payments, not for tax compliance but for budgeting and peace of mind. Thanks everyone for sharing your experiences and expertise. This thread has saved me from so much unnecessary stress!