Caregiver Income Reported

Discussion in 'General Discussion' started by lucillesur, Jan 17, 2014.

  1. lucillesur

    lucillesur Newbie

    Hi All,

    My mom writes a check over to my brother that is her live in caregiver. She gives him essentially her entire income of $1800 a month. This just covers her bills, rent, food, medical, prescriptions, you name it.

    He assists her with cooking, meds, some bathing, hygiene, etc. In order to qualify for Aid and Attendance she needed to pay a caregiver. He absolutely is her caregiver, but reallly makes NO money off this.

    How does he report this to the IRS on his taxes but not get screwed essentially? Schedule C as a side business with zero profit? Just seems difficult.

    Thoughts? We are in the process of applying for Aid and Attendance because she has dementia and is needing professional care soon...
  2. vetadmin

    vetadmin Administrator Staff Member

    The VA works very closely with the IRS and Social Security. If she is paying him to act as her caregiver, then it is on him to claim those funds as income to be claimed.

    He should only claim what he is actually paid. Do not include any mortgage, electric, food etc. Only expenses for her care. You want to keep a clean accounting of these expenses, and not mix them together. He should not have to claim money that is being paid for things other than her care.
  3. lucillesur

    lucillesur Newbie

    Many thanks!

    Any idea how to report this on his taxes? He doesn't really qualify as an independent contractor since he doesn't provide these services elsewhere and the "other income" like for a household employee will only allow $1800 a year before a W9 is needed. How do caregivers report this income?
  4. vetadmin

    vetadmin Administrator Staff Member

    He would need a W9 given to him.

    I would suggest he seek a tax professional to see what and how to handle this income source.

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