Let's Talk Taxes & IRS

[kayellen]

 My parents are completely dependent on me for their care... "Everything".
  Now will the IRS also want a piece of me ??  

[vetadmin]

Kay,

This is a legal question that is based on you claiming the income and being required to report it, so this is between you and your accountant or the individual who files your taxes as to how you handle this matter.

[pologal1979]

look at it this way, you are being paid as a caregiver. these are YOUR WAGES. its like self employment. then you would report your wages to the IRS. simple.

[jpez]

My parents are completely dependent on me for their care... "Everything".
  Now will the IRS also want a piece of me ??  

If you are paying your own money to care for them, them consider taking them as  dependents on your taxes.  It would increase your Medical deduction. ( ck w a tax person)

if they are paying you......see above.

[VSR]

Its circular in a lot of ways either:

1. They are paying you and you need to claim the payments as income on your income taxes

OR

2. they are not paying you and they cannot consider it as an expense

Biggest problem is that VA and the IRS share information, so either way, whatever you submit, VA/IRS will find out.  It is probably financially better to claim the payments as income.