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Level 2
February 9, 2025
Question

Household Employee Income

  • February 9, 2025
  • 1 reply
  • 3 views

If my client made less then $2600 as a Household Employee which was exempt of receiving a W2 etc. As an accountant do I need to ask my client for proof for this income?

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    1 reply

    BobKamman
    Level 15
    February 9, 2025

    Are you using it to qualify for Earned Income Credit, or some other credit?  

    JR26Author
    Level 2
    February 9, 2025

    he is qualified for EIC, this income will increase his credit.

    BobKamman
    Level 15
    February 9, 2025

    "Due diligence" means satisfying yourself that the income really happened, and documenting your reasons.